Singapore’s Seatrium — the former Sembcorp Marine — has secured a green trade finance facility from compatriot bank OCBC worth an estimated €720m ($808m).
The sizable trade facility is claimed to be one of the largest syndicated financing solutions for the maritime industry, issued by a sole bank.
“This trade financing solution will support Seatrium’s offshore renewable projects and decarbonisation efforts, bolstering the group’s implementation of green measures and investments in sustainable and environmental-friendly technology and practices within its operations,” the shipyard group said.
The facility is aligned with the Green Loan Principles, which are a set of guidelines introduced in 2018 by the Loan Market Association (LMA), the Asia Pacific Loan Market Association (APLMA), and the Loan Syndications and Trading Association (LSTA) for the issuance of green loans.
They provide guidance to ensure that green loans are used to fund sustainable projects in line with global sustainability goals.
These principles are said to provide guidelines for transparency, accountability and disclosure of information related to the use of the proceeds and the environmental impact of the projects.
Elaine Lam, head of global corporate banking at OCBC, said the bank is committed to supporting its clients’ sustainability goals and accelerating the transition to a low-carbon economy.
“This green trade finance facility, being one of the industry’s largest, attests to Seatrium’s dedication to decarbonising its operations and investing in green technology and renewable energy solutions,” she said.
“Sustainability is a key driver in the transformation of the global offshore and marine industry, and we are glad to work with forward-looking customers such as Seatrium.”
Paul Tan, acting group finance director at Seatrium, said receiving the green trade finance facility from OCBC Bank was a “testament to the company’s commitment towards responsible and sustainable business practices in the offshore and marine industry”.
“This partnership aligns with our vision of achieving a more sustainable future through the implementation of eco-friendly measures and technologies throughout our operations,” he said.
Earlier this year, OCBC unveiled decarbonisation targets for its ship-finance activities as part of a wider initiative targeting carbon-intensive industries.
South East Asia’s second-largest lender aims to achieve a target metric or “alignment delta” at or below zero by 2030 for shipping.
