UOB, BNP Paribas to coordinate US$200M green club loan facility for Agricultural Bank of China

UOB branch at Raffles Place, SingaporeUOB branch at Raffles Place, Singapore. Photo taken pre-Covid.

UOB and BNP Paribas said Tuesday they acted as joint green structuring advisers and coordinators for a US$200 million green club loan facility for Agricultural Bank of China’s (ABC) Singapore branch.

The proceeds will be used for financing green projects under the sustainable financing framework developed jointly by UOB and BNP Paribas for ABC Singapore branch, the banks said in a statement.

The framework, which was reviewed by global environment, social and governance ratings agency Sustainalytics, provides guidelines to ABC Singapore branch on giving financing to clients or projects in segments including renewable energy, green buildings and access to services such as public transportation, the statement said.

The US$200 million green loan is the first tranche of a US$465 million club loan facility for which BNP Paribas and UOB are the mandated lead arrangers, along with five other banks, the statement said.

Lim Lay Wah, UOB’s global head of financial institutions group, said UOB has been working to promote sustainable business practices.

Our coordination and arrangement of the green club loan facility demonstrate UOB’s responsibility and commitment to drive collaborative efforts in the financial sector to ensure the long-term economic, social and environmental well-being of the community at large,” she said in the statement. “Our support also reinforces our longstanding relationship with ABC, one of China’s leading banks.”

Chaoni Huang, head of sustainable capital markets for Asia Pacific at BNP Paribas, said her bank was pleased to play a role in a transaction demonstrating the development of sustainable finance in the region.

“Chinese banks are recognizing the importance of green finance to their own sustainable growth in this region,” she said in the statement.  “With the support of the People’s Bank of China and innovative policy frameworks in Singapore, forward-thinking institutions like Agricultural Bank of China Singapore Branch are developing frameworks to guide financing to sectors that can make a big difference to the fight against climate change.”

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