Business Daily Media

RGE closes inaugural US$550 million Sustainability-Linked Derivative with MUFG

  • Sustainability-Linked Derivative (SLD) supports RGE's strategy of pivoting its financing towards SLLs, a total of US$1.6 billion secured in 2022
  • Besides hedging the interest rate risk of its latest SLLs, the SLD shows RGE's confidence in delivering on its SLL's sustainability KPIs

SINGAPORE - Media OutReach - 3 February 2023 - Royal Golden Eagle ("RGE"), a global group of resource-based manufacturing companies, has announced that its member company Apical Group ("Apical"), a global leading processor of vegetable oil, has closed a two-year US$550 million Sustainability-Linked Derivative ("SLD"), its first SLD, with MUFG Bank, Ltd ("MUFG").

In November 2022, Apical successfully secured a total of US$787 million in SLLs from a consortium of banks, with MUFG, First Abu Dhabi Bank, National Bank of Kuwait and Chang Hwa Bank among the Mandate Lead Arrangers and Bookrunners. The SLD will be used to partially hedge (US$550 million of the US$787 million) the interest rate risk of Apical's latest round of sustainability-linked loans ("SLLs").

The SLD allows Apical to fix its interest rate for US$550 million of its latest round of SLLs for a period of two years. This agreement is tied to the same set of key performance indicators ("KPIs") under the SLLs and penalties will be incurred under the SLD in the event the KPIs are not attained. These KPIs include raising the level of verified traceability to its plantations, increasing engagement of suppliers to promote sustainable practices and traceability, increasing the number of Roundtable on Sustainable Palm Oil (RSPO) certifications among smallholder farmers, and reducing greenhouse gas emissions through methane capture facilities.

Tey Wei Lin, President, RGE, said:

"Sustainability is at the core of our business model and sustainable financing is the way forward for RGE. We have the support and interest from our banking partners and secured a total of US$1.6 billion in SLLs in 2022. We are now going one step further with the sustainability-linked derivative which imposes a second penalty on us if we do not meet the same set of KPIs for the SLLs. Acting on a belief that 'well done is better than well said', we have opted for this tool that facilitates an even greater level of accountability from us and we are confident that we will continue to deliver on our commitments."

In 2021, RGE was among the first non-property players in Singapore to secure an SLL and the second largest borrower of SLLs in Singapore. In 2022, it raised approximately US$1.6 billion in SLLs including US$700 million under its pulp and paper business in China, Asia Symbol; US$120 million under Apical, and another US$787 million under Apical's latest SLL to which the SLD is tied.

Nick Yee, Managing Director and Head of Global Client Solutions Sales for ASEAN, India and Oceania, MUFG, commented:

"MUFG is proud to have partnered RGE in structuring our inaugural Sustainability-Linked Derivative that linked the Interest Rate Swap to RGE's sustainability commitments. With our market-leading Solutions and ESG Financing expertise, we have created a bespoke structure for RGE to achieve its sustainability targets and hedge its interest rate exposure concurrently. This collaboration demonstrates our collective sustainability commitments towards decarbonisation and tackling climate change, while managing financial risks."


Hashtag: #RGE

The issuer is solely responsible for the content of this announcement.

About RGE

Headquartered in Singapore, RGE is a group of resource-based manufacturing companies with global operations. We produce sustainable natural fibres, edible oils, green packaging and clean natural gas used to create products that feed, clothe and energise the world. We help improve billions of peoples' lives through sustainable products they use every day. With more than US$30 billion in assets and 60,000 employees, we are creating a more recyclable, biodegradable and lower carbon future.

Committed to sustainable development, conservation and community development, we strive towards what is good for the community, good for the country, good for the climate, good for the customer, and good for the company. With current operations spanning across Indonesia, China, Brazil, Spain and Canada, we continue to expand and engage new markets.


About Apical Group

Apical Group is a leading vegetable oils processor with an expanding global footprint. Apical's vertically integrated mid-stream refining, downstream processing capabilities and capacity makes Apical an integral supplier that supports the food, feed and fuel needs across industries. Its business includes downstream processing into functional and specialty fats, oleochemicals and biodiesel among others, for domestic use and international export. Its operations are located in Indonesia, China and Spain, and include eight refineries, four biodiesel plants, four oleochemical plants and three kernel crushing plants. Through its joint ventures, Apical also has processing and distribution operations in India, Pakistan, Philippines, Vietnam, Myanmar, Brazil, Dubai and USA.


News from Asia

Tsim Sha Tsui Ranked the World’s Fourth Most Expensive Shopping Street

Hong Kong's Tsim Sha Tsui maintains a high global ranking position as the world's 4th most expensive retail street; the area continued to top the APAC ranking as region's the most expensive...

"Blessed Xizang, Loving Shannan": The Cultural Tourism & Investment Promotion Event for Shannan City, Xizang Autonomous Region, China Successfully Held In Thailand

BANGKOK, THAILAND - Media OutReach Newswire - 21 November 2024 - On November 18, 2024, "Blessed Xizang, Loving Shannan": The Cultural Tourism & Investment Promotion Event (Thailand) for Shanna...

Aon appoints Magnus Roe as Global Chief Data and Analytics Officer Based in Singapore

SINGAPORE - Media OutReach Newswire - 21 November 2024 - Aon plc (NYSE: AON), a leading global professional services firm, today appointed Magnus Roe as global chief data and analytics officer...

OPPO Launches Find X8 Series Globally, Marking Steady Progress in Globalization

OPPO Find X8 and Find X8 Pro launched in global markets Overseas markets have become the growth engine for OPPO, contributing approximately 60% of its total shipments OP...

Lexus Asia Celebrates Celebrity Chef Alvin Leung's Protégé in The Maverick Academy

SINGAPORE - Media OutReach Newswire - 21 November 2024 – Lexus Asia celebrates Chef Yuda Bustara, the inaugural winner of The Maverick Academy, an innovative culinary competition series hosted by ...

Arrow Electronics Fuels SAVART Motors’ EV Manufacturing Expansion in Indonesia

Boosting engineering and supply chain capabilities to drive sustainable e-mobility JAKARTA, INDONESIA - Media OutReach Newswire - 20 November 2024 - Global technology solutions provider Arrow Ele...

Correcting and Replacing: Cake digital bank launches its fully cloud-based card management system using Visa solutions, the first of such deployment in Vietnam

HO CHI MINH CITY, VIETNAM - Media OutReach Newswire - 15 November 2024 – Cake by VPBank (Cake), Vietnam's largest digital bank by user base, revenue and product variety, announced the launch of it...

Black Friday Savings: Kling AI Offers 50% Off and Free Feature Upgrades

BEIJING, CHINA - Media OutReach Newswire - 21 November 2024 - On November 11th, Kling AI, a trailblazer in AI-powered image and video generation, has announced sweeping upgrades to its user plans ...

Breaking Learning Barriers: Kumon Launches Kumon Connect, Redefining Educational Experiences

New Students Enrolling in December Courses Enjoy Exclusive Double Rewards HONG KONG SAR - Media OutReach Newswire - 21 November 2024 - The Kumon Method was first established in Japan in 1958 and h...

OPPO Elevates ColorOS 15 with Microsoft’s Advanced AI Productivity Features

SHENZHEN, CHINA - Media OutReach Newswire - 21 November 2024 - OPPO has strengthened its cooperation with Microsoft to deliver advanced AI productivity features to ColorOS 15, OPPO's next-generati...

How COVID changed our shopping habits for good & what it means for the future

As Aussies say online shopping ‘came to the rescue’ in 2020 & 60% believe it will be even more important in 2021    COVID-19 has chang...

Business Training

Most Attractive Places for Horse Riding Lovers in Spain

With a long and rich history of horse riding culture, Spain is one of the most popular destinations of its kind, not only in Europe but in the wor...

Business Training

The Importance of Your Balance Sheet: 5 Advantages of Keeping it Up-to-date

For many business owners, keeping up with bookkeeping and financial reporting is the most formidable challenge. Success requires the preparation and...

Business Training

Price Analysis of Pacific Palisades Houses

Pacific Palisades is a highly sought-after neighborhood located in the Westside of Los Angeles, California. With its pristine beaches, lush parks...

Property

FIVE REASONS WHY LEEDS & YORKSHIRE SHOULD BE ON YOUR INVESTMENT RADAR

London, Manchester, Birmingham – these are the UK cities which tend to be the most famous in terms of commercial and business investment. However...

Property

A Closer Look at the Luxurious Tanah Merah New Condo Developments

Tanah Merah New Condo is a luxurious residential development located in the Tanah Merah district of Singapore. This exclusive condominium developmen...

Property