The loan will be used to fund U-Ming’s fleet renewal plan which includes the construction of two new 210,000dwt bulk carriers in China.
According to the report, OCBC Bank has extended a US$70 million sustainability-linked loan to one of Taiwan’s largest listed bulk carrier companies, U-Ming Marine Transport Corporation.
This marks a first for both companies – the first sustainability-linked loan that OCBC Bank has extended to a Taiwanese company, and in U-Ming’s case, its first sustainability-linked loan outside of Taiwan.
“Interest in the decarbonisation of shipping has been gaining momentum as the world acts towards achieving net-zero by 2050. This sustainability-linked loan with U-Ming is pegged to clear emissions targets that will help realise this vision, and it demonstrates OCBC’s commitment as a signatory to the Poseidon Principles. As a leading bank in the region for sustainable financing, we are proud to support a like-minded customer such as U-Ming in its fleet renewal and decarbonisation plans,†said Ms Elaine Lam, OCBC Bank’s Head of Global Corporate Banking.
As a leading bank in the region for sustainable financing, we are proud to support a like-minded customer such as U-Ming in its fleet renewal and decarbonisation plans,†said Ms Elaine Lam, OCBC Bank’s Head of Global Corporate Banking.
The sustainability targets underscore U-Ming’s commitment to operate a fleet of high-performance, energy-saving vessels. U-Ming’s performance on these targets will be assessed by an external independent party.
The requirement to achieve an improved performance every year for the duration of the loan demonstrates U-Ming’s commitment to continually strive for better sustainability outcomes and is in line with the Bank’s desire to partner and incentivise its clients to work towards more robust environmental, social and governance standards.
“This sustainability linked loan from OCBC Bank further demonstrates U Ming’s long-term commitment to transforming our vessels into a modern, environmentally friendly fleet which fully complies with the IMO carbon reduction targets. We know this is something our own customers want to see and so we are working with them to ensure we are making continuous progress towards achieving this. We are pleased to collaborate with OCBC as our trusted banking partner and a financial institution which understands the urgent need for the shipping industry’s transformation,†said Mr C.K. Ong the President of U Ming.
Further in the structuring of the sustainability-linked loan, U-Ming also engaged an external reviewer, DNV, to ensure the targets are aligned with the Sustainability-Linked Loan Principles 2021, and material to U-Ming’s business strategy.
Further in the structuring of the sustainability-linked loan, U-Ming also engaged an external reviewer, DNV, to ensure the targets are aligned with the Sustainability-Linked Loan Principles 2021, and material to U-Ming’s business strategy.
