Apical Secures Its First Sustainability-Linked Loan Facilities of US$750 million

SINGAPORE – Media OutReach -
6 September 2021 – Apical Group, a
leading agri-business processor of palm oil and member of the RGE group of
companies, has secured a US$750 million sustainability-linked loan from a
syndicate of lenders. This is a first for Apical, and among only a few known in
the palm oil industry, where borrowing is tied to sustainability targets and
performance.

The loan, issued to Apical’s units AAA
Oils & Fats Pte Ltd and Apical Middle East, is structured as a two-year
revolving credit and four-year term loan facilities. Under the facilities,
Apical is committed to meeting improvement targets for a range of
environmental, social and governance (ESG) metrics, as assessed by
Environmental Resources Management, a London-headquartered global provider of
environmental, health, safety, risk and social issues consulting services.

Andy Cairns, Head of Global Corporate Finance of First Abu Dhabi
Bank, the Facility Agent, commented, “We congratulate Apical on this
achievement. ESG is an increasing focus for borrowers and investors
globally and it reflects very highly on Apical that it is among
the first Asia names, and companies in its industry sector, to embrace
this. I am confident that such forward-thinking commitment to
achieving its sustainability goals will position Apical advantageously for the
future.” 

The targets are based on Apical’s commitment
to ensure a sustainable supply chain. Performance against the pre-determined
targets will be assessed on an annual basis for the loan period, and incentives
awarded accordingly. The loan
will be used to finance working capital and capital expenditure requirements of
Apical Group. 

Apical’s Executive Director, Pratheepan
Karunagaran, said, “This is a milestone for Apical and a testament to the
commitment and confidence we have in our ESG performance. The spirit of
continuous improvement is deeply rooted in our corporate culture and we are
motivated to perform even better to deliver against the loan targets set.  We are grateful for the enthusiasm of our
financiers and hope that our success will serve as a catalyst in further
developing sustainability-linked financing in the sector.”

The loan facilities received overwhelming
demand with participation from 22 banks in nine countries. Among the Mandate
Lead Arrangers and Bookrunners are E.Sun Commercial Bank, Ltd, First Abu Dhabi
Bank, Mega International Commercial Bank Co., Ltd, MUFG Bank, Ltd, Bank
Sinopac, and Taishin International Bank Co., Ltd.