Seatrium has secured the early refinancing of S$400 million (US$303.6 million) from Singapore’s DBS Bank, which includes an option to convert to a sustainability-linked loan.

The offshore, marine and energy contractor on Thursday confirmed its wholly owned subsidiary Seatrium Financial Services had successfully refinanced an existing loan facility due next February with a S$400 million committed loan facility from DBS.

The three-year committed loan facility includes a sustainability-linked conversion option aligned to sustainability-linked loan principles which, Seatrium said, would support the company in achieving its environmental, social and corporate governance (ESG) targets over time.

“We are pleased to receive the strong support from DBS to refinance our existing loan facility ahead of time,” said Paul Tan, Seatrium’s acting group finance director.

“With this latest round of successful refinancing, we have secured over S$2 billion in sustainable and green financing this year alone.

“We are encouraged by the strong support of our banks to our ongoing efforts in pursuing sustainability in our business operations for long-term stakeholder value creation and driving energy transition in our industry.”

Seatrium is committed to achieving its Sustainability Vision 2030 and supporting its clients in their decarbonisation efforts through the construction, conversion and retrofit of energy-efficient vessels. It is working towards achieving 40% of its net order book from renewables and cleaner/green solutions and reducing its greenhouse gas emissions by 40% by 2030.

“The maritime industry is essential to the real economy, yet also one of several hard-to-abate sectors. Seatrium is a pioneer for its commitment to sustainability and to overcome the challenges associated with the energy transition,” commented Lim Wee Seng, group head of energy, renewables and infrastructure, institutional banking group, DBS.

Singapore-headquartered DBS in 2021 had provided Seatrium’s first sustainability-linked loan.