Seatrium Financial Services, a wholly-owned subsidiary of Seatrium Limited, has successfully refinanced an existing loan facility due in February 2024 with a $400 million committed loan facility from DBS Bank.
According to a Dec 28 bourse filing, the three-year committed loan facility includes a “sustainability-linked conversion option” aligned to sustainability-linked loan principles. This will support Seatrium in achieving its environmental, social and governance (ESG) targets over time, says the company.
Sustainability-linked loans are typically structured with pre-established key performance indicators — also known as sustainability performance targets — such as lower electricity use or reduced emissions.
With this latest round of successful refinancing, Seatrium has secured over $2 billion in sustainable and green financing in 2023.
The engineering solutions provider for the offshore, marine and energy industries wants to commit 40% of its net order book from renewables and cleaner or green solutions. Seatrium also aims to reduce its greenhouse gas emissions by 40% by 2030.
Paul Tan, Seatrium’s acting group finance director, says: “We are pleased to receive the strong support from DBS to refinance our existing loan facility ahead of time. 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.”
See also: Ex-president of Seatrium Brazilian subsidiary Martin Cheah acquitted of corruption charges
Lim Wee Seng, group head of energy, renewables and infrastructure at DBS’s Institutional Banking Group, says the maritime industry is essential to the real economy, yet also one of several hard-to-abate sectors.
“Seatrium is a pioneer for its commitment to sustainability and to overcome the challenges associated with the energy transition. As a purpose-driven bank, DBS is proud to be a long-time partner in Seatrium’s sustainability journey, having provided the group’s first sustainability-linked loan in 2021, and to continue working with the sector to create a sustainable, low-carbon future.”
As at 9.34am, shares in Seatrium are trading 0.3 cents higher, or 2.61% up, at 11.8 cents.
