Sembcorp bags S$1.2 billion green loan for corporate needs, sustainability projects
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Annabeth Leow
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MAINBOARD-LISTED Sembcorp Industries on Wednesday (May 4) disclosed that it has bagged a S$1.2 billion sustainability-linked loan through a wholly-owned unit.
The loan facility takes Sembcorp’s green and sustainable financing and refinancing to S$2.9 billion so far, amid its ongoing efforts to support a groupwide “brown-to-green” transformation strategy.
The 5-year loan facility, which Sembcorp billed as its first and largest syndicated sustainability-linked loan facility to be based on the Singapore Overnight Rate Average (Sora), is tied to sustainability performance targets in line with Sembcorp’s green financing framework.
The interest rate of the loan facility will be subject to a step-up margin if Sembcorp does not cut greenhouse gas emissions intensity to 0.40 tonne of carbon dioxide equivalent per megawatt hour or less by end-2025, and achieve gross installed renewable energy capacity of 10 GW.
Sembcorp last reported emissions intensity of 0.51 tonne of carbon dioxide equivalent per megawatt hour and gross installed renewable energy capacity of 2.75 GW in 2021.
It has now said that the latest sustainability-linked loan will be used for general corporate purposes and/or financing or refinancing group renewable energy and sustainable projects.
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The facility is fully underwritten and arranged by ANZ, DBS and OCBC. ANZ is the lead sustainability coordinator, and DBS and OCBC are the joint sustainability coordinators.
Sembcorp shares closed S$0.02 or 0.7 per cent higher at S$2.97 on Wednesday, before the announcement.
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