Royal Golden Eagle (RGE), a global group of resource-based manufacturing companies headquartered in Singapore, announced that its member company Apical Group (Apical) has closed US$787 million in Sustainability-Linked Loans (SLLs), with the strong support of Middle Eastern banks.
UAE’s largest bank, First Abu Dhabi (FAB), and Kuwait’s largest financial institution, the National Bank of Kuwait (NBK), were among the mandated lead arrangers, book-runners, and underwriters for the SLLs. Other Middle Eastern lenders in the consortium of more than 20 banks included the National Bank of Fujairah (NBF) and Invest Bank.
Tey Wei Lin, President, of RGE, said: “Sustainability is at the core of our business model and sustainable financing is the way forward for RGE. Encouraged by the strong participation from Middle Eastern banks for Apical’s latest round of SLLs, we aim to contribute more to the growth of sustainable financing in the region, as we grow our business.”
Read more: GCC’s sustainable debt issuance unlikely to see a strong uptick
Green and sustainability-linked debt issuance in the Middle East and North Africa (MENA) region has outpaced global growth, rising from US$4.5 billion in 2020 to US$18.64 billion in 2021. In addition, 2022’s green debt issuance in the Gulf was record-setting as it exceeded oil, gas, and coal-related financing for the first time since 2015.
FAB, which is leading the sustainable finance agenda in the MENA region, has extended some of the biggest SLLs in the region to notable names like Majid Al Futtaim and Etihad Airways.
Structured as a two-year revolving credit facility, the US$787 million SLLs will support Apical’s growth as a global agribusiness with strong downstream segments, covering oleochemicals, functional fats, animal feed, and packed oil. Apical is scaling its global operations to address growing consumer needs and address issues such as global food security.
Read more: UAE’s MAF raises $1.25 bn loan to promote ESG targets
