Maybank Singapore (Maybank) has extended a US$100 million sustainability-linked Islamic revolving credit facility (RCF-i) to AET, a global owner and operator of maritime transportation assets and specialised services.
This transaction marks the first such facility in the shipping industry in Southeast Asia, demonstrating, the companies say, Maybank and AET’s commitments to net-zero greenhouse gas (GHG) emissions.
The maiden RCF-i will support AET’s strategic initiatives to reduce its fleet’s GHG emissions intensity by 40% by 2030 (against a 2008 baseline) and achieve its long-term commitment of net-zero GHG emissions by 2050.
AET has been pioneering investments in LNG dual-fuel tankers, it notes, with 10 vessels already in its portfolio today and is taking the lead with future-focused industry players in the ongoing development of zero-emission vessels.
Furthermore, the company is also looking to invest in new assets and businesses that support the energy transition. This RCF-i can be used, the companies note, to fund such low-carbon initiatives and decarbonization efforts to meet the world’s energy needs in the most sustainable and responsible way. This is also, they argue, a great example of collaboration between the financing and shipping sectors to reduce the carbon footprint in the shipping industry.
Zahid Osman, AET’s president and CEO, points out: “With this RCF-i, based on Shariah principles, we are strengthening our relationship with like-minded partner Maybank, in our collaborative efforts towards the decarbonization of the shipping sector and AET’s commitment to deliver more energy with less emissions.”