Keppel Infrastructure Trust (KIT) and Keppel Energy Pte. Ltd. (KE), through a joint venture, have secured a 7-year US$700 million sustainability-linked loan from DBS Bank and OCBC Bank for its jointly owned gas-fired co-generation plant, Keppel Merlimau Cogen Plant.
One of the largest sustainability-linked loans in Singapore, the transaction also marks KIT and KE’s maiden sustainability-linked loan and is the first such loan for Singapore’s energy sector to date.
DBS Bank and OCBC Bank acted as joint lenders and sustainability coordinators for this transaction.
The loan is linked to carbon emission targets for Keppel Merlimau Cogen Plant. These targets include benchmarking of the plant’s carbon emissions intensity against national indices, as well as demonstrating continuous improvement in the plant’s carbon emissions intensity. If these pre-set targets are met, the interest rate on the facility will be subsequently reduced on a tiered basis.
