Seatrium has secured a green trade finance facility from Oversea-Chinese Banking Corporation (OCBC) worth an estimated EUR720 million ($1.04 billion).
The facility, which comes with the issuance of a banker’s guarantee, is one of the largest syndicated financing solutions issued by a single bank for the maritime industry.
The trade financing solution is aligned with internationally-recognised Green Loan Principles and will support Seatrium’s offshore renewable projects and decarbonisation efforts.
As at March 31, renewables and cleaner or green solutions comprise about 39% of the group’s order book.
“Receiving the green trade finance facility from OCBC Bank is a testament to our commitment towards responsible and sustainable business practices in the offshore and marine industry,” says Seatrium’s acting group finance director, Paul Tan.
“This partnership aligns with our vision of achieving a more sustainable future through the implementation of eco-friendly measures and technologies throughout our operations. We are grateful for OCBC Bank's support, which enables us to take significant strides towards the industry’s energy transition quest and contribute to Singapore's goal of achieving carbon neutrality by 2050,” he adds.
See also: ASL Marine seeks to exit SGX’s watch-list
Elaine Lam, OCBC’s head of global corporate banking, says “We are committed to supporting our 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. 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.”
Shares in Seatrium closed 0.9 cents higher or 6.82% up at 14.1 cents on July 12.
