Sembcorp Industries has secureda USD1.2 billion syndicated sustainability-linked loan facility for a period of five years in Singapore.
This is expected to be one of the largest loan facilities linked with the Singapore Overnight Rate Average (SORA) in the Southeast Asia (SEA) region. The loan facility will be subject to margin adjustments based on sustainability performance targets regarding carbon emissions and gross installed renewable energy (RE) capacity. In case targets are not met, interest rates will be subject to a step-up margin, while margin discounts will be removed if targets are achieved. Funds from the loan will be used to finance the company’s RE and sustainable projects, among others. The sustainable loan will be arranged and underwritten by Australia and New Zealand Banking Group (ANZ), DBS Bank and Oversea-Chinese Banking Corporation (OCBC Bank).