Sembmarine obtains S$500m Sora-based sustainability-linked loan from DBS

SEMBCORP Marine (Sembmarine) has through its subsidiary obtained a S$500 million sustainability-linked (SL) loan from DBS.

The loan is believed to be the first in the maritime industry which references the Singapore Overnight Rate Average (Sora), DBS and Sembmarine said in a joint press statement on Thursday.

The facility comprises two components - a compounded daily Sora rate calculated in arrears and an applicable margin. It also features interest rate discounts linked to pre-determined environmental, social and governance (ESG) targets.

The mainboard-listed shipbuilder will enjoy savings in borrowing costs as it meets these ESG targets - which are aligned with the group's performance targets set out in its sustainability report.

Sembmarine group finance director William Goh said: "This sustainability-linked financing complements our ongoing efforts to proactively manage the environmental impact of our business."

DBS's head of oil and gas Dorian Delteil noted: "As a purpose-driven bank, we believe financial institutions have a strategic and pivotal role to play in proactively supporting industries work towards a lower-carbon future."

Shares of Sembmarine were trading 0.7 per cent or 0.1 Singapore cent lower at 15.3 cents as at 9.39am on Thursday.