JAKARTA: A joint venture between commodity trader Glencore Plc and Indonesia’s PT Chandra Asri Pacific is marketing a US$1bil sustainability-linked syndicated loan as the appeal of environmental, social and governance (ESG)-related financing expands in the region.
DBS Bank Ltd and Oversea-Chinese Banking Corp are the arrangers of the facility, which has an average life of 6.3 years, the people said, who asked not to be named discussing private matters.
Aster Chemicals & Energy, a new entity under the joint venture called CAPGC, is the borrower, the people added. CAPGC, which is purchasing Shell’s Singapore-based refinery business, is majority-owned and operated by Chandra Asri, while Glencore owns a minority stake through subsidiary companies, according to the Indonesian firm’s website.
Glencore declined to comment, while Chandra Asri didn’t respond to a request for comment. Asia Pacific companies are increasingly incorporating ESG-linked elements into their financing as they look to boost decarbonisation efforts. — Bloomberg
