South Korean wireless telecommunications operator, NYSE-listed SK Telecom, has secured its first sustainability-linked loan facility from DBS Bank in Singapore.
The three-year loan facility of KRW200 billion ($238 million) features interest rate discounts pegged to pre-determined environmental, social and governance (ESG) targets including carbon emissions management as well as workplace health and safety metrics.
“We have extended our ESG management to our financing strategy by receiving the sustainability-linked loan from DBS,” says Yoon Poong-young, chief financial officer of SKT. “We will do our best to create a virtuous cycle where proactive ESG-related efforts are translated into greater enterprise value.”
To date, SKT has been focusing on creating social value through efforts to reduce greenhouse gas emissions.
“We believe financial institutions have a critical role to play in proactively supporting corporates and industries transition towards a future that is sustainable for the environment and society. As a purpose-driven bank, we remain dedicated and committed to helping clients with a common vision to navigate and structure their sustainability roadmaps and achieve their ambitions. We look forward to supporting SKT in their sustainability transition and achieving a net zero emissions economy together,” says Tan Su Shan, group head of institutional banking at DBS.
