United Overseas Bank Limited (UOB) and BNP Paribas today announced they acted as Joint Green Structuring Advisers and Coordinators for a green club loan facility of US$200 million to Agricultural Bank of China Limited (ABC), Singapore Branch. This is the first green club loan facility established under ABC Singapore Branch’s Sustainable Financing Framework.
The loan proceeds will be used to finance green projects that adhere to the green financing principles, guidelines and standards referenced in the Sustainable Financing Framework, which BNP Paribas and UOB jointly developed for ABC Singapore Branch.
Ms Chaoni Huang, Head of Sustainable Capital Markets for Asia Pacific, BNP Paribas, said, “Chinese banks are recognising the importance of green finance to their own sustainable growth in this region. With the support of the People's Bank of China and innovative policy frameworks in Singapore, forward-thinking institutions like Agricultural Bank of China Singapore Branch are developing frameworks to guide financing to sectors that can make a big difference to the fight against climate change. BNP Paribas is pleased to play a leading role in such a transaction, which demonstrates that sustainable finance is evolving fast in Asia.”
Ms Lim Lay Wah, UOB’s Global Head of Financial Institutions Group (Banks, Non-Bank Financial Institutions and Financial Sponsors) said, “UOB has been working with our clients and partners across industries to promote and to implement sustainable business practices for the benefit of various stakeholders. Our coordination and arrangement of the green club loan facility demonstrate UOB’s responsibility and commitment to drive collaborative efforts in the financial sector to ensure the long-term economic, social and environmental well-being of the community at large. Our support also reinforces our longstanding relationship with ABC, one of China’s leading banks.”
The US$200 million green loan to ABC Singapore Branch is the first tranche of a US$465 million club loan facility, of which BNP Paribas and UOB are also Mandated Lead Arrangers, together with five other banks. UOB also acted as the Agent in the transaction.
About ABC Singapore Branch’s Sustainable Financing Framework
The Sustainable Financing Framework provides guidelines for ABC Singapore Branch in providing green, social or sustainable financing to clients or projects in the areas such as renewable energy, green buildings and access to essential services, including public transportation and healthcare.
Sustainalytics, a global environmental, social and corporate governance research and ratings agency, independently reviewed ABC Singapore Branch’s Sustainable Financing Framework and confirmed its alignment with the Loan Market Association and Asia Pacific Loan Market Association’s Green Loan Principles; International Capital Market Association’s Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines; as well as the ASEAN Green Bond Standards, ASEAN Social Bond Standards and ASEAN Sustainability Bond Standards.
