Singtel launches sustainability linked loan, worth $750m

This is the largest SG-dollar denominated sustainability-linked loan in the country.

The Singtel Group, through wholly-owned subsidiary Singtel Group Treasury Pte. Ltd. launched its first sustainability-linked revolving credit facility of $750m, the largest Singapore-dollar denominated sustainability-linked loan in Singapore to date.

The launch marks the Group’s foray into sustainable financing under its new programme called Olives, that is linked to sustainability targets. Provided by DBS, OCBC and UOB, the three-year loan features interest rate discounts pegged to predetermined environmental, social and governance (ESG) targets in areas such as climate risk, carbon management and workplace health and safety metrics. The loan is guaranteed by Singtel and will be used for general corporate purposes.

“Under Olives, we will potentially launch other ESG-related loans and green bonds in future. Having long integrated sustainability across our business, we are taking the crucial next step of extending this to our financing strategy as we continue to hold ourselves accountable for making a positive impact on society,” said Singtel Group chief financial officer Arthur Lang.

To advance its goal of sustainable growth, from 2020, long-term incentive plans for all Singtel Group top management also carry ESG-related targets.