Seatrium bags S$400 million in refinancing with sustainability-linked option
SEATRIUM’S wholly owned subsidiary, Seatrium Financial Services, has refinanced an existing loan facility due February 2024 with a S$400 million loan from DBS.
The three-year committed loan facility includes a sustainability-linked conversion option aligned to sustainability-linked loan principles.
This is expected to support Seatrium in achieving its environmental, social and governance goals over time, said the group on Thursday (Dec 28).
Paul Tan, Seatrium’s acting group finance director, said the latest round of refinancing brings the group’s total sustainable and green financing secured in the year to date to over S$2 billion.
“We are encouraged by the strong support of our banks to our ongoing efforts in pursuing sustainability in our business operations for long-term stakeholder value creation, and driving energy transition in our industry.”
DBS’ group head of energy, renewables and infrastructure for institutional banking Lim Wee Seng said: “Seatrium is a pioneer for its commitment to sustainability and to overcome the challenges associated with the energy transition.”
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In his view, the maritime industry is “essential to the real economy, yet also one of several hard-to-abate sectors”.
The bank provided Seatrium’s first sustainability-linked loan in 2021.
The energy and marine solutions group is working towards achieving 40 per cent of its net order book from renewables and cleaner or green solutions. It also aims to reduce its greenhouse-gas emissions by 40 per cent by 2030.
Shares of Seatrium ended Thursday S$0.003 or 2.6 per cent higher at S$0.118.
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