Singtel Optus enters A$1.4B sustainability-linked credit facility

A Singtel promotional display at Paya Lebar Quarter. Photo taken November 2021A Singtel promotional display at Paya Lebar Quarter. Photo taken November 2021

Singtel Optus has entered a A$1.4 billion sustainability-linked revolving credit facility, launched under the telco’s sustainability financing program called Olives, Singtel said in a filing to SGX Thursday.

The facility has interest rate discounts tied to reducing Optus‘ absolute greenhouse gas (GHG) emissions by 25 percent by 2025, compared with 2015 levels, the filing said.

The proceeds will be used to refinance existing credit facilities and other general corporate purposes, Singtel said.

“The launch of Optus’ sustainability-linked bond last November, the first by an Asia Pacific telco, was oversubscribed. The successful launch of the bond has given us good insights into investors’ environmental concerns, and type of commitments they want to see from corporates’ green financing efforts,” Arthur Lang, Singtel’s group chief financial officer, said in the statement.

“We have built on those learnings to launch the first sustainability-linked revolving credit facility by an Australian telco today,” he said.

The three-year facility is with 12 banks, including DBS Bank, OCBC, HSBC’s Sydney branch and ANZ Banking Group, the filing said.

In November 2021, Optus priced a A$300 million seven-year fixed-rate sustainability-linked bond at 2.6 percent. That bond also had a target of reducing the company’s absolute greenhouse gas emissions by 25 percent by 2025, compared with 2015 levels.