Business Daily Media

Business Marketing

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

Fortune Prime Global (FPG) has been honoured with the 2023 T.O.P 1 Forex Broker Award and the 2024 T.O.P 1 Trading Liquidity Award

BEIJING, CHINA - Media OutReach Newswire - 15 April 2024 - The world of trading is complex and ever-changing, and timing is tricky for every trader. With transparent information and stringent inv...

HKSTP Companies Exhibit the Latest AI Technology Solutions at InnoEX 2024 and the Hong Kong Spring Electronics Fair (Spring Edition)

25 partners showcase a concerted effort to build Hong Kong as an international metropolis of intelligence HONG KONG SAR - Media OutReach Newswire - 15 April 2024 - The Hong Kong Science and Techn...

K3 Legal in association with Fred Kan & Co opens first office in Hong Kong

K3 Legal Hong Kong gives access to clients to legal services across multiple jurisdictions including China’s Greater Bay Area, Japan, and New Zealand HONG KONG SAR - Media OutReach Newswire - 15 A...

ICONSIAM's 'THAICONIC SONGKRAN CELEBRATION' Achieves Sensational Success as Tourists from All Over the World Join in the Unforgettable Water Splashing and Cultural Festivities

ICONSIAM hosts a 12-day Songkran event titled 'THAICONIC SONGKRAN CELEBRATION: Joyful Songkran Festival, Continuing the Legacy of World Heritage'. Five days in, the event has had a successful turno...

GOOD Vision Unveils K-Shape™: A Revolutionary Corneal Topographer at The International Exhibition of Inventions of Geneva

HONG KONG SAR - Media OutReach Newswire - 15 April 2024 - GOOD Vision Technologies Co., Limited, a Group in Ophthalmic Optics & Diagnostics, is introducing a game-changing corneal topograph...

Aramco Vice President addresses Aramco’s sustainability initiatives at One Earth Summit

BEIJING, CHINA - EQS Newswire - 15 April 2024 - Musaab Al-Mulla, Aramco Vice President of Energy & Economic Insights, attended the inaugural One Earth Summit held in Hong Kong on March 25th, el...

LukFook Group Expanded Retail Footprint in Southeast Asia

With Grand Opening of its First Malaysia "Lukfook Joaillerie" at Tun Razak Exchange KUALA LUMPUR, MALAYSIA - Media OutReach Newswire - 15 April 2024 - Luk Fook Holdings (International) Limited (...

Travelodge Myeongdong Namsan: The Latest Addition to Seoul's Hospitality Scene

SEOUL, SOUTH KOREA - Media OutReach Newswire - 15 April 2024 - Travelodge Hotels Asia proudly unveils its newest addition, Travelodge Myeongdong Namsan, marking another milestone in the city's hos...

With record scale, China's consumer products expo shares opportunities and market with world

HAIKOU, CHINA - Media OutReach Newswire - 15 April 2024 - China, the world's second-largest economy, is sharing its booming consumer market with companies around the world, with its heavyweight ex...

DFS CIRCLE Celebrates First Anniversary: Journey to 'Collect the World' with Exclusive Gifts designed by the trending illustrator, matsui, and Destination-unique Collectibles!

DFS CIRCLE celebrates their first anniversary through offering In-app missions with exclusive rewards and gifts to DFS CIRCLE members. From now (Apr 27 in Hong Kong) until May 3...

Popular

Exclusive Q&A: Four Zero Trust practices for better data security

The past year has seen industries dramatically shift from on-premises operations to cloud and hybrid solutions, fundamentally changing how businesses of all sizes approach data management. As businesses embraced this digital c...

Inclusive Competitiveness: Key to Future U.S. Economic Prosperity

Former NFL Player’s Book Says Inclusive Competitiveness is Key to Future U.S. Economic Prosperity  Some may only know Johnathan Holifield as a former Cincinnati Bengals running back, but since his stint in the NFL, he’s been ...

Capgemini to acquire Australian cloud and digital services provider, Empired

The acquisition of Empired would significantly increase the size of the Capgemini business in Australia and New Zealand and position it as a market leader in digital, data and cloud across the region   Paris, Sydney, July 1...

Virtual Office
Tomorrow Business Growth