Specialty chemical solutions provider Megachem has secured its first sustainability-linked financing from United Overseas Bank (UOB).
According to Megachem, UOB will offer the company a trade financing facility of US$10 million ($14.4 million). The facility comes with pre-determined sustainability performance targets, pegged to ratings by international sustainability rating agency, EcoVadis.
“This sustainability-linked financing from UOB is a key step in our sustainability journey and a clear demonstration of our commitment to be a responsible member of the community, together with our customers, suppliers, as well as our other stakeholders,” says Sidney Chew, managing director of Megachem.
Leong Yung Chee, head of group corporate banking, UOB continues: “Policymakers, consumers and regulators are employing increasingly stringent sustainability standards across all major industries, including chemicals. Megachem’s first sustainability-linked facility has demonstrated their commitment to a greener future.”
“To partner them on their sustainability journey, we are structuring this facility using a clear and transparent framework for tracking performance against pre-determined ESG markers. This greatly simplifies the process of accessing sustainable financing for global clients like Megachem,” he adds.
As at 1.36pm, shares in Megachem are trading flat at 50 cents.
