SK Telecom (NYSE:SKM, hereinafter referred to as “SKT”) today announced that it has secured its first sustainability-linked loan facility from DBS Bank in Singapore.
The three-year KRW 200 billion (SGD 238 million) loan facility features interest rate discounts pegged to pre-determined environmental, social and governance (ESG) targets in areas such as carbon emissions management and workplace health and safety metrics. In the event SKT meets or exceeds the pre-determined ESG targets, the corresponding interest rate will be reduced. The loan will be used to create social value through diverse corporate activities such as the expansion of environmentally-friendly network infrastructure.
“We have extended our ESG management to our financing strategy by receiving the sustainability-linked loan from DBS,” said Yoon Poong-young, Chief Financial Officer of SKT. “We will do our best to create a virtuous cycle where proactive ESG-related efforts are translated into greater enterprise value.”
SKT has been focusing on creating social value through aggressive efforts to reduce greenhouse gas emissions and build a stronger social safety net by fully utilizing its advanced ICT.
Tan Su Shan, Group Head of Institutional Banking at DBS said, “We believe financial institutions have a critical role to play in proactively supporting corporates and industries transition towards a future that is sustainable for the environment and society. As a purpose-driven bank, we remain dedicated and committed in helping clients with a common vision to navigate and structure their sustainability roadmaps and achieve their ambitions. We look forward to supporting SKT in their sustainability transition and achieving a net zero emissions economy together.”
To increase its support for businesses seeking to achieve their sustainability ambitions, DBS has committed to finance SGD 50 billion in renewable, clean-energy and green projects by 2024, more than doubling its earlier target of SGD 20 billion. DBS is also the first Singapore bank to offer Transition Financing and launched the world’s first sustainable and transition finance framework and taxonomy to help clients advance on sustainability agenda. The bank has also recently committed to ensure net zero operational carbon emissions across the bank by 2022 and continues to reduce the bank’s carbon footprint while advancing its sustainable procurement agenda.
