United Overseas Bank and BNP Paribas are joint green structuring advisors and coordinators for the first green club loan facility to the Agricultural Bank of China's Singapore branch.
United Overseas Bank and BNP Paribas announced on Monday they acted as joint green structuring advisors and coordinators for a green club loan facility of $200 million to Agricultural Bank of China (ABC), Singapore branch. This is the first green club loan facility established under ABC Singapore’s Sustainable Financing Framework, both lenders said in a media statement.
«Chinese banks are recognizing 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,» said Chaoni Huang, head of Sustainable Capital Markets for Asia Pacific, BNP Paribas.
Part of a Larger Tranche
The $200 million green loan to ABC Singapore 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. The loan proceeds will be used to finance green projects that follow green financing principles, guidelines, and standards referenced in the Sustainable Financing Framework.
«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,” said Lim Lay Wah, UOB’s global head of Financial Institutions Group.
