Seatrium, through its wholly-owned subsidiary, Estaleiro Jurong Aracruz Ltda (EJA), has refinanced an existing facility with a US$500 million ($683.5 million) facility from Standard Chartered Bank (Singapore) on Oct 2. The existing facility was due to expire in December.
The new facility includes a sustainability-linked conversion option that’s aligned with sustainability-linked loan principles. This will help the group in achieving its environmental, social and governance (ESG) targets over time through adjustments to the loan characteristics upon conversion. Seatrium is working towards achieving 40% of its net order book from renewables and cleaner/ green solutions, and reducing its greenhouse gas emissions by 40% by 2030.
“We are pleased to receive the strong support from our relationship bank, Standard Chartered Bank (Singapore) to refinance our existing loan facility ahead of time, with improved terms and conditions. The embedded sustainability feature provides an additional boost to our ongoing efforts in promoting sustainability in our business and supporting the industry’s energy transition towards cleaner energy sources,” says Seatrium’s CEO Chris Ong.
“We are delighted to continue our trusted, long-standing partnership with Seatrium and its subsidiaries, to support their progress in transition with the view to enabling future growth. Transition finance is a core component of our sustainability offering, demonstrating our commitment in achieving net zero, together with our clients, through innovative and flexible financing solutions,” adds Freddy Ong, Standard Chartered’s head of client coverage, Singapore, corporate, commercial and institutional banking.
Shares in Seatrium closed at 13.4 cents on Sept 29.
