The five-year facility will be used for general corporate purposes and, or financing or refinancing of Sembcorp’s renewable energy and other sustainable projects.
The facility will be subject to margin adjustments tied to pre-agreed sustainability performance targets on Sembcorp’s greenhouse gas (GHG) emissions intensity and gross installed renewable energy capacity.
A unique feature of the financing structure and a first in the Singapore loan market is that the interest rate of the loan will be subject to a step-up margin if the targets are not achieved, with no margin discount for meeting the targets.
The facility is fully underwritten and arranged by Australia and New Zealand Banking Group, DBS Bank and Oversea-Chinese Banking Corporation.
See also: Building Asia’s low-carbon industrial future
Sembcorp closed on May 4 at $2.97, up 0.68% for the day and up 47.76% year to date.
