Keppel secures S$1 billion sustainability-linked revolving loans with DBS and UOB
Samuel Oh
KEPPEL has taken out sustainability-linked revolving credit facilities with DBS and UOB of S$500 million each, with tenures of up to three years, to be used to enhance the company’s sustainability performance.
The asset manager said on Tuesday (Jan 23) that the loans come with “preferential interest margins which are tied to Keppel’s achievement of certain sustainability performance targets (SPTs), and would be stepped-up if Keppel does not achieve those SPTs”.
It added that it intends to use the sustainability-linked loans for general corporate purposes as well as the pursuit of business opportunities in the sustainability arena.
In conjunction with the loans, Keppel launched its sustainability-linked financing framework. Developed together with DBS and UOB, it spells out individual key performance indicators (KPIs) and SPTs that the company is trying to achieve.
The framework outlines Keppel’s plans to enhance its performance across three areas:
- Reducing absolute Scope 1 and 2 carbon emissions by 50 per cent compared to 2020 baseline by 2030, based on straight-line reduction;
- Growing Keppel’s portfolio of renewable energy assets, including renewable imports and projects under development, to 7 gigawatts (GW) by end-2030, with an interim target of 4.9 GW by end-2027; and
- Maintaining a good rating of at least 95th percentile in the Singapore Governance and Transparency Index.
Kevin Chng, Keppel’s chief financial officer, said: “The launch of the sustainability-linked financing framework reflects our determination to embed sustainability targets across different aspects of our operations, including financing.”
Keppel said it will publish updates on its progress against the SPTs in its annual sustainability report, which will be subjected to independent external assurance.
Shares of Keppel fell 0.2 per cent or S$0.01 to S$6.83 on Tuesday before the news.
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