HNB joins global syndicate in US$ 1bn sustainability-linked loan for Aster Chemicals

HNB Senior Vice Presidents/ Head of Wholesale Banking Majella Rodrigo and HNB Senior Vice Presidents/ Head of Corporate Banking Manojith Weerasuriya join Aster Chemical and Energy Pte. Ltd representatives, Planning and Optimisation Director, Anawat Chansaksoong and Business Development Director Foo Kee Khoon, at the signing ceremony of this strategic partnership

Singapore-based Aster Chemicals & Energy Pte Ltd has successfully raised US$ 1 billion through an oversubscribed sustainability-linked syndicated term loan (SLL) facility, backed by a consortium of leading international lenders and credit funds. 

The initial US$ 700 million facility was upsized by an additional US$ 300 million via the exercise of a green-shoe option, reflecting strong investor confidence and demand.

Aster, a joint venture majority-owned by Chandra Asri Group with Glencore as the minority partner, operates a crude oil refinery and ethylene cracker in Pulau Bukom, together with downstream chemical facilities in Jurong Island.

DBS Bank Ltd. and Oversea-Chinese Banking Corporation Limited (OCBC) served as Mandated Lead Arrangers, Underwriters, and Bookrunners, and as Sustainability Coordinators, ensuring the facility’s alignment with Aster’s ESG objectives.

“Our participation in this landmark transaction underscores HNB’s deep commitment to fostering sustainable and responsible financing. We take pride in joining hands with our global partners to champion sustainability linked initiatives that strengthen both environmental stewardship and long-term economic resilience,” HNB, Senior Vice President / Head of Wholesale Banking Majella Rodrigo noted. 

HNB participated in this global sustainable financing arrangement alongside other leading banks including Clifford Capital, Mizuho Bank Ltd., PT Bank Mandiri (Persero) Tbk, PT Bank Negara Indonesia (Persero) Tbk, Singapore Branch, PT Bank Rakyat Indonesia (Persero) Tbk, Singapore Branch, Bangkok Bank PCL, First Abu Dhabi Bank PJSC (FAB), Indonesia Eximbank and Standard Chartered Bank. 

HNB, Senior Vice President / Head of Corporate Banking, Manojith Weerasuriya added, “This transaction reflects HNB’s strategic ambition to drive high-impact, cross-border financing that supports global sustainability goals. Partnering with leading international institutions strengthens our commitment to creating lasting value through responsible banking and innovative financial solutions.” 

The proceeds from the facility, are linked to measurable reductions in greenhouse gas emissions intensity, and will be used for general corporate purposes, including rejuvenation projects for Aster’s assets on Pulau Bukom and Jurong Island. 

DNV, a leading Norwegian technical consultancy firm, provided Sustainability-related opinions and assessed the loan’s alignment with sustainability-linked loan principles issued by the Asia Pacific Loan Market Association (APLMA), Loan Market Association (LMA), and Loan Syndications & Trading Association (LSTA). Legal counsel for the consortium of lenders was Baker McKenzie Wong & Leow Singapore, while Latham & Watkins LLP represented the borrower.