MISC signs facility agreement with Standard Chartered for six VLECs
MISC Berhad (MISC), through its Singapore-based subsidiaries, entered into a USD527 million syndicated loan facility (Facility) for the financing of six Very Large Ethane Carriers (VLECs), with Standard Chartered playing a lead role as Structuring Bank, Sustainability Coordinator, and Hedge Coordinator, according to the company's release.
The Korea Development Bank, Sumitomo Mitsui Banking Corporation, Labuan Branch, DBS Bank Ltd, Export-Import Bank of Malaysia Berhad, MUFG Bank Ltd., Singapore Branch, as well as an undisclosed lender acted as Mandated Lead Arrangers. The 11-year sustainable-linked non-recourse term loan is MISC’s debut sustainability-linked loan (SLL) and is structured to align with its long-term business strategy and sustainability aspirations.
MISC has committed to achieving net-zero greenhouse gas emissions by 2050 and aims to contribute to a carbon-neutral economy by transitioning to low-carbon, and eventually zero-carbon, emissions transport solutions. With both environmental and governance key performance indicators (KPIs), the ambitious environmental KPI is benchmarked to go beyond the emissions target outlined in International Maritime Organisation’s (IMO) 2050 decarbonisation trajectory and the Poseidon Principles. This includes measuring the carbon intensity of MISC’s Gas Assets & Solutions fleet by means of the annual efficiency ratio (AER).
MISC Berhad's 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.
Standard Chartered is an international banking group, with a presence in 59 of the world’s most dynamic markets, and serving clients in a further 64.
