MISC said it is committed to achieving net-zero greenhouse gas emissions by 2050 and aims to contribute to a carbon-neutral economy by transitioning to low-carbon, and eventually zero-carbon, emissions transport solutions.
PETALING JAYA: MISC Bhd
’s Singapore-based subsidiaries have entered into a US$527mil (RM2.3bil) syndicated loan facility to finance six very large ethane carriers (VLECs) with Standard Chartered playing a lead role as structuring bank, sustainability coordinator and hedge coordinator.
The South Korea Development Bank, Sumitomo Mitsui Banking Corp Labuan Branch, DBS Bank Ltd, Export-Import Bank of Malaysia Bhd, MUFG Bank Ltd, Singapore branch, as well as an undisclosed lender were mandated lead arrangers.
In a joint statement yesterday, MISC and Standard Chartered said the 11-year sustainable-linked non-recourse term loan is MISC’s debut sustainability-linked loan (SLL) and is structured to align with its long-term business strategy and sustainability aspirations.
The statement said MISC has committed to achieving net-zero greenhouse gas emissions by 2050 and aims to contribute to a carbon-neutral economy by transitioning to low-carbon, and eventually zero-carbon, emissions transport solutions.
The SLL facility is a testament towards promoting sustainable development, as well as a recognition of its contribution to environmental, social and governance (ESG) issues.
MISC vice-president of finance Raja Azlan Shah Raja Azwa said integrating ESG principles into the group’s long-term strategy and decision-making is key to shaping a sustainable future.
“Securing this landmark SLL for our VLECs reflects our continued commitment to accelerating the drive to improve our ESG performance by tying our financing with our decarbonisation strategy.
“We will progressively implement our plan to achieve net-zero greenhouse gas emissions by 2050 and this includes fostering strategic collaborations with our stakeholders including the ship financing sector,” he commented.
Meanwhile, Standard Chartered global head of shipping finance Abhishek Pandey said the bank is proud to offer MISC its first SLL to help accelerate the group’s efforts in reducing its carbon footprint in the maritime industry.
“At Standard Chartered, we are committed to playing our part in addressing climate change and in enabling other organisations, like MISC, to do so by supporting them in their ambitions,” he added. — Bernama
