Strategy & Practice Management
SP Group Launches Green Financing Framework
SP Group (SP) has announced that it has established a Green Financing Framework in a move that deepens the integration of its sustainability ambition into its financing strategy.
SP has also secured its maiden green loan facilities of SNG100 million from DBS, OCBC Bank and UOB on a bilateral basis, according to a press release.
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, energy efficiency projects, renewable energy and green buildings. The Framework will also govern the use and management of the green loan facilities from DBS, OCBC Bank and UOB.
The Framework is credible, impactful and aligned with the relevant international principles and guidelines, as established in findings by Sustainalytics, an independent ESG and corporate governance research, ratings and analysis firm. The firm was engaged to provide a second party opinion on the Framework.
With the Framework in place, investors and lenders will now have greater visibility of the use of proceeds and the positive environmental impact of SP's investments in sustainable energy solutions and projects that are funded by green financing instruments. This will help investors and lenders identify and fund investments and projects aligned with their sustainable investing strategy.
Loong Hui Chee, Chief Financial Officer, SP, said: “This Green Financing Framework is central to SP Group's commitment to advance clean energy transition, build sustainable infrastructure and foster innovation to enable a low carbon economy. We are pleased to partner DBS, OCBC Bank and UOB to secure our maiden green loan facilities. We look forward to working with like-minded financiers to support Singapore's efforts to build a green finance ecosystem.”
Lim Wee Seng, Group Head of Energy, Chemicals and Infrastructure, DBS Institutional Banking Group, said: “As Southeast Asia's largest bank, DBS plays a significant role in financing positive change and using our expertise and sector knowledge to support leading energy companies like SP Group, in achieving their sustainable development goals. In our on-going commitment to sustainability, DBS financed about SGD597 million of renewable and clean energy-related projects last year. We continue to see tremendous growth potential in sustainable finance with more companies exploring ways to create positive impact and as stakeholders place greater responsibility on corporates to drive both profit and purpose-driven agendas.”
Elaine Lam, Head of Global Corporate Banking, OCBC Bank, said: “We are pleased to support our long-time customer SP Group to drive the clean energy transition and contribute to the building of sustainable cities. Their Green Financing Framework, which we are pleased to have co-developed, enables them to tap on green loans to fund projects that can create positive change. We look forward to partnering on more sustainable finance deals with SP Group in the future.”
Leong Yung Chee, Head of Group Corporate Banking, UOB, said: “At UOB, we understand how important sustainability is to our client's business model and take an active role in supporting their transition towards a low carbon future as they ramp up their sustainability strategies. We are pleased to deepen our existing relationship with Singapore's biggest utilities group, from our partnership on UOB's Utilities Marketplace[3], to being a provider of the company's first green loan. Our latest green loan exemplifies our commitment to helping our clients grow responsibly and demonstrates our efforts in building more sustainable and liveable cities.”
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