Standard Chartered acts as Sustainability Coordinator and Hedge Coordinator in MISC Berhad’s sustainable-linked loan agreement

credit: “Standard Chartered Bank”

(IN BRIEF) Standard Chartered has played a key role in a USD527 million syndicated loan facility for MISC Berhad’s six Very Large Ethane Carriers (VLECs). The 11-year sustainable-linked non-recourse term loan aligns with MISC’s long-term sustainability goals of achieving net-zero greenhouse gas emissions by 2050. The syndicated loan includes environmental and governance KPIs, with MISC’s environmental KPI benchmarked to exceed the emissions target set by the International Maritime Organisation’s (IMO) 2050 decarbonisation trajectory and the Poseidon Principles. The loan reflects MISC’s commitment to sustainable development and Standard Chartered’s expertise in promoting sustainable financing solutions.

(PRESS RELEASE) SINGAPORE, 20-Apr-2023 — /EuropaWire/ — Standard Chartered (LON: STAN), a leading international banking group, announces that it has played a crucial role in facilitating a USD527 million syndicated loan facility for MISC Berhad’s six Very Large Ethane Carriers (VLECs). The Singapore-based subsidiaries of MISC entered into this financing agreement, with Standard Chartered serving as the Structuring Bank, Sustainability Coordinator, and Hedge Coordinator. Other Mandated Lead Arrangers in the syndicated loan include Korea Development Bank, Sumitomo Mitsui Banking Corporation, Labuan Branch, DBS Bank Ltd, Export-Import Bank of Malaysia Berhad, MUFG Bank Ltd., Singapore Branch, and an undisclosed lender.

This 11-year sustainable-linked non-recourse term loan is MISC’s first sustainability-linked loan (SLL), aligned with its long-term business strategy and sustainability goals. MISC has committed to achieving net-zero greenhouse gas emissions by 2050 and contributing to a carbon-neutral economy through low-carbon and eventually zero-carbon emissions transport solutions.

The SLL facility includes environmental and governance KPIs, with MISC’s ambitious environmental KPI benchmarked to exceed the emissions target set by the International Maritime Organisation’s (IMO) 2050 decarbonisation trajectory and the Poseidon Principles. The annual efficiency ratio (AER) will measure the carbon intensity of MISC’s Gas Assets & Solutions fleet, and meeting pre-agreed KPIs will result in annual adjustments to the interest rate.

The syndicated loan agreement reflects MISC’s commitment to sustainable development and its contribution to ESG. It also highlights Standard Chartered’s expertise and commitment to promoting sustainable financing solutions.

Raja Azlan Shah Raja Azwa, MISC’s Vice President of Finance, said: “We at MISC believe that integrating ESG principles into our long-term strategy and decision-making is key to shaping a sustainable future. Securing this landmark SLL for our VLECs reflect 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 GHG emissions by 2050 and this includes fostering strategic collaborations with our stakeholders including the ship financing sector.”

Abhishek Pandey, Global Head of Shipping Finance at Standard Chartered, said: “We are 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 with their own ambitions.”

For further information please contact:

Maisara Noor Ahmad
Head, External Communications
MISC
+603 2275 3496

Josephine Wong
Group Media Relations
Standard Chartered
+65 6981 1514

MISC Berhad

MISC Berhad (MISC or the Group) is a global leader in delivering energy-related maritime solutions & services with more than 50 years of experience in the maritime & energy industry. Its principal businesses comprise energy shipping and its related activities, owning and operating offshore floating solutions, marine repair and conversion, engineering and construction works, integrated marine services, port management and maritime services as well as maritime education and training.

The Group’s modern and diverse fleet consists of more than 100 owned and in-chartered vessels comprising of Liquefied Natural Gas (LNG) and Ethane carriers, Petroleum and Product vessels, Floating Production Systems (FPS) and LNG Floating Storage Units (FSU) with a combined deadweight tonnage (dwt) capacity of more than 13 million tonnes.

We are a proud constituent of the DJSI Emerging Markets Index and FTSE4Good Bursa Malaysia Index, a testament to our sustainability performance and strong Environmental, Social and Governance (ESG) practices. MISC Berhad is listed on the Main Board of Bursa Malaysia.

For more information, visit www.misc.com.my.

SOURCE: Standard Chartered