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AET inks Southeast Asia’s first sustainability-linked Islamic revolving credit facility with Maybank Singapore Singapore

Maybank Singapore (Maybank) has extended a US$100 million sustainabilitylinked Islamic revolving credit facility (RCF-i) to AET, one of the leading global owners and operators of maritime transportation assets and specialised services. This landmark transaction marks the first of such facility in the shipping industry in Southeast Asia, demonstrating both Maybank and AET’s commitments to net-zero greenhouse gas (GHG) emissions. The maiden RCF-i will support AET’s strategic initiatives to reduce its fleet’s GHG emissions intensity by 40 per cent by 2030 (against 2008 baseline) and achieve its long-term commitment of net-zero GHG emissions by 2050.

AET has been pioneering investments in LNG dual-fuel tankers with 10 vessels already in its portfolio today and is taking the lead with future-focused industry players in the ongoing development of zero-emission vessels. Furthermore, AET is also looking to invest in new assets and businesses that support the energy transition. This RCF-i can be used to fund such low-carbon initiatives and decarbonisation efforts to meet the world’s energy needs in the most sustainable and responsible way. This is also a great example of collaboration between the financing and shipping sectors to reduce the carbon footprint in the shipping industry.

Maybank’s role as Sole Financier of the RCF-i, with Maybank Investment Bank as the Sustainability Structuring Adviser, attests to Maybank Group’s position as a sustainability leader in Southeast Asia and a global leader in Islamic finance. This transaction contributes to Maybank Group’s expanding sustainable financing portfolio and reduction in Scope 3 emissions. Maybank Group to mobilise RM80 billion in sustainable financing by 2025 and has achieved close to RM53 billion between January 2021 and the third quarter of this year. At the signing ceremony, Mr Zahid Osman, President & CEO of AET said, “Today, we mark another important milestone with AET’s first sustainability-linked Islamic RCF in the shipping industry in Southeast Asia as a further endorsement of our sustainability agenda. With this RCF-i, based on Shariah principles, we are strengthening our relationship with like-minded partner Maybank, in our collaborative efforts towards the decarbonisation of the shipping sector and AET’s commitment to deliver more energy with less emissions.”

Dato’ Mohamed Rafique Merican, Maybank Islamic Group CEO said, “We are pleased to partner AET in its sustainability journey by being the first bank to offer a sustainabilitylinked Islamic RCF for the shipping industry in Southeast Asia. We are also embracing ethical banking principles to promote and enhance sustainable development through the principles of protection of the environment. We are well-placed as the go-to-bank for holistic, sustainable and Shariah-compliant solutions, and to work with organisations that are committed to achieving more sustainable outcomes.”

Mr Gregory Seow, Head of Global Banking at Maybank Singapore, added, “As a purposedriven bank with a footprint in 10 markets in Southeast Asia, we are committed to drive long-term value creation for businesses and communities, remaining true to our mission of Humanising Financial Services. This maiden sustainability-linked Islamic transaction offers a fixed ceiling rate to provide an element of certainty to AET in this volatile environment, and there is no compounding of charges in the event of late payments.”

Maybank Singapore has demonstrated a track record in providing sustainable financing and pioneering solutions for local and global clients. It executed the world’s first Islamic green financing facility in the hospitality sector in 2021. It has recently been awarded the “Corporate & Investment Bank of the Year – Singapore” and “Green Deal of the Year – Singapore” awards at the Asian Banking & Finance Retail Banking Awards 2023, as well as the “Islamic Bank of the Year (Singapore)” at The Asset Triple A Islamic Finance Awards 2023.
Source: AET

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