Singapore yard group Seatrium has started 2024 as it ended last year by building up more sustainability-linked financial firepower.
The SGX-listed company has secured an SGD 400m ($300m) green revolving loan facility from Singapore’s third-largest lender, UOB.
This is Seatrium’s first green loan from UOB. Further financial details were not disclosed.
Seatrium said the facility, underpinned by green loan principles, supports its business growth in the offshore renewables space through financing green/environmentally sustainable projects.
“Successful partnerships with industry players and financial institutions are critical in achieving our shared commitment towards maritime decarbonisation,” Seatrium’s chief financial officer Adrian Teng said.
“UOB’s strong support for our green financing efforts underscores their commitment towards sustainable development, a key step towards driving positive change in clean energy transition.”
Leong Yung Chee, head of group corporate banking at UOB, said the transformation of the global energy system is exponential and green financing plays a pivotal role in accelerating this transition towards decarbonisation.
“As like-minded partners, we are aligned and supportive of Seatrium’s industry-leading efforts to seize opportunities within the renewables energy segment,” he said.
“This partnership will pave the way for more innovative and cleaner energy solutions to chart responsible business growth globally.”
In 2023, Seatrium successfully secured more than SGD 2bn in sustainability-linked loans and green financing.
The group has set a target of 40% of its net orderbook to comprise cleaner/greener solutions and renewable sources of energy by 2030.
Late last year the company secured an SGD 500m committed revolving credit loan facility arranged by DBS Bank, HSBC and Standard Chartered Bank.
However, Seatrium’s transition to the renewables sector has not been without its problems.
At the beginning of this year, Seatrium had a newbuilding contract, worth over SGD250m, for an offshore wind farm in the US cancelled by BP and Equinor.
The two European oil majors blamed the decision on “changed economic circumstances” on an industrywide scale.
Seatrium had earlier played down any potential negative impact on its business from the difficulties being experienced by the fledgling offshore wind industry in the US in a briefing with analysts in November 2023.
In addition to Singapore, Seatrium operates shipyards and other facilities in Brazil, China, Indonesia, Japan, the Philippines, Norway, the UK and the US.
