Singapore’s RGE has secured a US$1 billion Sustainability-Linked Loan (SLL) for its agribusiness, incorporating Asian Agri and Apical. The SLL, tied to key performance indicators (KPIs), highlights RGE’s commitment to sustainability, with oversubscription by 1.4 times and the introduction of a Sustainability-Linked Derivative (SLD) reinforcing the company’s dedication to responsible growth and accountability.
29 January 2024 – Singapore-based multinational conglomerate RGE has successfully closed a three-year, US$1 billion Sustainability-Linked Loan (SLL) for its sustainable agribusiness group, comprising Asian Agri and Apical. This marks RGE’s foray into sustainability-linked Islamic financing, showcasing the company’s commitment to environmentally conscious practices and its strategic expansion into burgeoning markets, particularly the Middle East.
The US$1 billion SLL will be instrumental in bolstering RGE’s agribusiness operations, supporting growth, and facilitating expansion across a diverse range of product offerings within the bioeconomy. Tied to rigorous key performance indicators (KPIs), including enhanced supplier traceability verification, increased utilization of renewable energy sources, and collaboration with NDPE-compliant suppliers, the loan underscores RGE’s dedication to sustainable and ethical business practices.
To ensure accountability, RGE has introduced a Sustainability-Linked Derivative (SLD), an interest rate swap also linked to the same predefined KPIs as the SLL. This innovative financial tool not only hedges interest rate risks but reinforces the company’s commitment to delivering on sustainability goals.
The financing received substantial support, being oversubscribed 1.4 times by a consortium of eight Mandated Lead Arrangers and Bookrunners (MLABs). This not only reaffirms confidence in RGE’s growth trajectory but also strengthens existing relationships while establishing new partnerships with financial institutions in the Middle East.
The announcement aligns with RGE’s broader strategy of transitioning all financing to Sustainability-Linked Loans, reflecting responsible growth and a commitment to contributing positively to the global bioeconomy. The Lead Sustainable Finance Advisor on the transaction is MUFG, underscoring the significance of sustainability in financial advisory roles.
