Aster Chemicals & Energy Pte. Ltd., a Singapore-headquartered provider of energy, chemical, and infrastructure solutions in Southeast Asia, has closed a sustainability-linked syndicated term loan facility amounting to US$1 billion, following strong demand and oversubscription from the banking community.

The facility was upsized through the exercise of a greenshoe option after attracting broad-based participation from leading banks across Singapore, Indonesia, Thailand, the United Arab Emirates, Japan, the United Kingdom, and Sri Lanka.

“The successful close of this US$1 billion sustainability-linked loan ( SLL ) reaffirms the confidence of our esteemed financial partners in Aster’s strategy and financial strength,” says Aster group chief financial officer and deputy chief executive officer Andre Khor. “It also underscores our commitment to integrate sustainability at the core of our growth journey and deliver long-term value to all stakeholders.”

Aster partnered with DBS Bank and OCBC as mandated lead arrangers, underwriters, and bookrunners ( MLAUBs ).

Both MLAUBs also acted as sustainability coordinators, ensuring alignment of the facility with Aster’s environmental, social, and governance ( ESG ) objectives. The SLL is directly linked to measurable reductions in the intensity of greenhouse gas ( GHG ) emissions.

Sustainable growth

A second party opinion was obtained from DNV Business Assurance Singapore on the financing's alignment with the Sustainability-Linked Loan Principles issued by the Asian Pacific Loan Market Association, Loan Markets Association, and Loan Syndications & Trading Association.

Proceeds from the facility will be deployed to be used for general corporate purposes for the borrower, which includes rejuvenation projects for its assets on Pulau Bukom and Jurong Island. By embedding sustainability-linked targets into its financing strategy, Aster strengthens its position as a responsible corporate citizen and a long-term partner in advancing Southeast Asia’s sustainable growth agenda, the company says.

Acting as mandated lead arrangers were Clifford Capital, Mizuho Bank, PT Bank Mandiri ( Persero ), PT Bank Negara Indonesia ( Persero ) Singapore Branch, and PT Bank Rakyat Indonesia ( Persero ) Singapore Branch.

Lead arrangers were Bangkok Bank, First Abu Dhabi Bank, Indonesia Eximbank, Standard Chartered, and Hatton National Bank.

Aster is a Chandra Asri-led joint venture with Glencore. The group’s total asset base includes a refinery with a capacity of 237,000 barrels per day alongside a naphtha cracker with a capacity for 1.1 million metric tonnes on Bukom Island, 2.5 million metric tonnes of downstream chemical assets on Jurong Island, and a 0.9 million metric tonne naphtha cracker in Cilegon, Indonesia.