• First Abu Dhabi Bank and the National Bank of Kuwait were among the lead arrangers and bookrunners
  • Other lenders in the consortium of 20-plus banks included the National Bank of Fujairah and Invest Bank

Dubai, UAE: 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 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, bookrunners 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, 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.”

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[1]. 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[2].

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.

Fawaz Abusneineh, Acting Head of Global Corporate Finance, FAB, said: “We are thrilled to have successfully closed this sustainability-linked syndicated loan to raise USD 787 million for Apical, which is part of the RGE group of companies. Acting as one of the mandated lead arrangers, bookrunners and underwriters, we have worked closely with RGE to promote this transaction in the Middle East and Asian loan markets. In line with FAB’s vision to promote sustainable economic growth in the region and our commitment towards the Net Zero Banking Alliance, we will continue to support our key clients, such as RGE, in raising sustainability-linked or green financing facilities.”

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 to address issues such as global food security. 

The latest round of SLLs by Apical reinforces an alignment of the company’s practices with Apical2030, its sustainability roadmap anchored by commitments and targets covering environmental and social pillars, including: attaining net zero by 2050; a 50% reduction in greenhouse gas emission intensity; and deeper engagement with suppliers to promote more sustainable practices. The goals under Apical2030 are aligned with MENA’s push on key environmental initiatives such as UAE Net Zero 2050 and Kuwait’s Sustainable Development Agenda 2030.

Apical’s US$787 million SLLs are tied to four key performance indicators (KPIs), with specific and measurable ESG targets to meet. These KPIs include raising the level of verified traceability to its plantations, increasing engagement of suppliers to promote sustainable practices and traceability, increasing the number of Roundtable on Sustainable Palm Oil (RSPO) certifications among smallholder farmers, and reducing greenhouse gas emissions through methane capture facilities.

In 2021, RGE was among the first non-property players in Singapore to secure an SLL, and the second-largest borrower of SLLs in the country. In 2022, including this latest round of US$787 million SLLs, RGE raised approximately US$1.6 billion in SLLs for its pulp and paper, and agri businesses. 

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About RGE:

Headquartered in Singapore, RGE is a group of resource-based manufacturing companies with global operations. It produces sustainable natural fibres, edible oils, green packaging and clean natural gas used to create products that feed, clothe and energise the world. RGE helps improve billions of people’s lives through sustainable products they use every day. With more than US$30 billion in assets and 60,000 employees, the company is creating a more recyclable, biodegradable, and lower-carbon future.

Committed to sustainable development, conservation and community development, RGE strives towards what is good for the community, good for the country, good for the climate, good for the customer, good for the company, and good for the world. With current operations spanning across Indonesia, China, Brazil, Spain and Canada, it is continuing to expand and engage new markets.

About Apical Group:

Apical Group, a member of the RGE group of companies, is a leading vegetable oils processor with an expanding global footprint. Apical’s vertically integrated mid-stream refining, downstream processing capabilities, and capacity make it an integral supplier that supports the food, feed and fuel needs across industries. Its business includes downstream processing into functional and specialty fats, oleochemicals, and biodiesel among others, for both domestic use and international export. Apical’s operations are located in Indonesia, China and Spain, and include eight refineries, four biodiesel plants, four oleochemical plants, and three kernel-crushing plants. Through its joint ventures, Apical also has processing and distribution operations in India, Pakistan, the Philippines, Vietnam, Myanmar, Brazil, Dubai and the USA.

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