Megachem Receives First US$10 Million Sustainability-Linked Loan from UOB
Megachem, a provider of speciality chemical solutions, has received its first sustainability-linked financing from United Overseas Bank (UOB).
According to Megachem, UOB would provide the company with a US$10 million ($14.4 million) trade financing facility. The facility comes with pre-determined sustainability performance targets that are linked to EcoVadis Ratings, an international sustainability rating agency.
Sidney Chew, managing director of Megachem, said:
"This sustainability-linked financing from UOB is a key step in our sustainability journey and a clear demonstration of our commitment to being a responsible member of the community, together with our customers, suppliers, as well as our other stakeholders."
Leong Yung Chee, head of group corporate banking UOB, said:
“Policymakers, consumers, and regulators are employing increasingly stringent sustainability standards across all major industries, including chemicals. Megachem’s first sustainability-linked facility has demonstrated their commitment to a greener future.
“To partner with them on their sustainability journey, we are structuring this facility using a clear and transparent framework for tracking performance against pre-determined ESG markers. This greatly simplifies the process of accessing sustainable financing for global clients like Megachem."
Source: The Edge Singapore