Commemorating Earth Day, two major firms in Singapore announced their sustainable green finance initiatives, namely power utility SP Group and telecommunications conglomerate Singtel Group. These developments will help put the brakes on climate change and signal that environmental, social, and governance (ESG) offerings are beginning to gain further traction in Singapore.
Singapore’s national utility SP Group released a Green Financing Framework in a move that deepens the integration of sustainability ambition into its financing strategy. Under the Framework, SP and its subsidiaries will be able to issue green financing instruments to finance and/or refinance eligible green projects in four categories: clean transportation projects, energy efficiency projects, renewable energy, and green buildings. SP has also secured its maiden green loan facilities of SGD 100 million (USD 75.5 million) from DBS, OCBC Bank and UOB on a bilateral basis.
In the same vein, Singapore’s largest mobile network operator Singtel Group, through wholly-owned subsidiary Singtel Group Treasury Pte Ltd, launched its first sustainability-linked revolving credit facility of SGD 750 million (USD 566 million), the largest Singapore-dollar denominated sustainability-linked loan in Singapore to date. Provided by DBS, OCBC and UOB, the three-year loan features interest rate discounts pegged to pre-determined ESG targets in areas such as climate risk, carbon management and workplace health and safety metrics.
(Sources: The Straits Times; SP Group; Singtel Group)