Singtel’s Australian unit enters A$1.4b sustainability-linked revolving credit facility

SINGTEL announced Thursday (Apr 28) that Australian subsidiary Optus Finance has inked a A$1.4 billion (S$1.4 billion) sustainability-linked revolving credit facility.

The loan – the first such revolving credit facility by an Australian telco – will be guaranteed by Optus Finance’s parent company Singtel Optus and some of its subsidiaries.

The interest rate discounts for the revolving credit facility are linked to Optus’ reduction of its absolute greenhouse gas emissions by 25 per cent by 2025, compared with a 2015 baseline.

The loan will be used to refinance its existing credit facilities, as well as other general corporate purposes.

The three-year revolving credit facility matures on Apr 24, 2025, and is entered with 12 banks.

Singtel group chief financial officer Arthur Lang said the group has built on learnings from the successful launch of Optus’ sustainability-linked bond last year – the first by an Asia Pacific telco.

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“The successful launch of the bond has given us good insights into investors’ environmental concerns, and type of commitments they want to see from corporates’ green financing efforts,” Lang said.

“(The sustainability-linked revolving credit facility) further underscores our commitment to aligning our financing strategy to the group’s sustainability targets,” he added.