Singtel Optus inks A$1.4 billion sustainability-linked revolving credit facility

Singtel has announced that its wholly-owned subsidiary, Optus Finance Pty Limited has inked a A$1.4 billion sustainability-linked revolving credit facility. Launched under Olives, Singtel’s sustainable financing programme, this is the first such revolving credit facility by an Australian telco.

The interest rate discounts are linked to Optus’ achievement of reducing its absolute greenhouse gas emissions by 25% (Scope 1 and 2 in tCO2e) by 2025, compared to a 2015 baseline. The loan is guaranteed by Optus Finance Pty Limited’s parent company, Singtel Optus Pty Limited, and certain of its subsidiaries, and will be used to refinance its existing credit facilities, as well as other general corporate purposes.

Arthur Lang, Singtel Group Chief Financial Officer, 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. We have built on those learnings to launch the first sustainability-linked revolving credit facility by an Australian telco today, which further underscores our commitment to aligning our financing strategy to the group’s sustainability targets.”

The three-year revolving credit facility matures on 24 April 2025 and is entered with 12 banks. The banks are Australia and New Zealand Banking Group Limited, Bank of China Limited (Sydney Branch), BNP Paribas (Australia Branch), Citibank, N.A. (Sydney Branch), Commonwealth Bank of Australia, DBS Bank Ltd. (Australia Branch), Mizuho Bank, Ltd., MUFG Bank, Ltd, Oversea-Chinese Banking Corporation Limited, Sumitomo Mitsui Banking Corporation (Sydney Branch), The Hongkong and Shanghai Banking Corporation Limited (Sydney Branch), Westpac Banking Corporation.