RGE, a Singapore-based multinational group of resource-based manufacturing companies, has closed a three-year, US$1 billion sustainability-linked loan (SLL) for its sustainable agribusiness group, consisting of Asian Agri and Apical.
The deal also includes a $1 billion sustainability-linked derivative interest rate swap, to hedge against interest rate risks.
The three-year loan will support operations and expansion of Asian Agri and Apical.
Banks involved in arranging the sustainability-linked loan include Commercial Bank of Dubai, First Abu Dhabi Bank, E.SUN Commercial Bank, Hua Nan Commercial Bank, Industrial Bank and Shanghai Pudong Development Bank. MUFG served as lead sustainable finance adviser.
Key performance indicators tied to the loans relate to supplier engagement, renewable energy usage and collaboration with no-deforestation partners. An independent consultant will verify the targets.
The deals underscore the region’s growing interest in sustainable financing, according to RGE Head of Banking Patrick Tan.
“It is a vote of confidence in our growth and sustainability journey. The US$150 million part of the financing, which is both sustainability-linked and Islamic, is a relatively new financing structure in the industry. We hope to further strengthen our relationships with Islamic financial institutions in the Middle East to support the region’s growth in green financing,” he said.
Through traceable supply chains and sustainable products, Asian Agri and Apical aim to enhance value for customers in line with COP28 decarbonisation pledges.
The loans demonstrate the company’s commitment to responsible expansion across its global operations. The Middle East is strategically important for RGE, with Dubai and Singapore acting as gateways to EMEA and Asian markets, respectively.
Abdul Rahim Al Nimer from Commercial Bank of Dubai added that the bank is “proud to be a part of RGE’s journey,” and said that this market deal is “a true testament” to CBD’s commitment to backing customer ambitions.
Fawaz Abusneineh from First Abu Dhabi Bank said the transaction “underlines FAB’s leadership in global Islamic and sustainable financing and the Group’s growing profile as a gateway facilitating trade and investment between the MENA and Southeast Asia regions.”
Failure to meet targets would increase RGE’s interest rates. The loans align with the company’s efforts to achieve sustainability goals.
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