Singtel subsidiary Singtel Optus has signed a A$1.4 billion ($1.37 billion) sustainability-linked revolving credit facility, becoming the first such revolving credit facility by an Australian telco.
The three-year revolving credit facility is launched under Olives, Singtel’s sustainable financing programme, and will mature on 24 April 2025.
The loan features interest rate discounts that are linked to Optus’ achievement of reducing its absolute greenhouse gas emissions by 25% by 2025, compared to a 2015 baseline.
The loan will be used to refinance its existing credit facilities, as well as other general corporate purposes.
Singtel Group CFO Arthur Lang said, “The launch of Optus’ sustainability-linked bond last November has given us good insights into investors’ environmental concerns, and type of commitments they want to see from corporates’ green financing efforts”
He adds that the company has built on those lessons to launch the first sustainability-linked revolving credit facility by an Australian telco, “which further underscores our commitment to aligning our financing strategy to the group’s sustainability targets.”
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Singtel shares closed on Apr 28 at $2.78, down one cent or 0.36% lower than its previous close.
