HNB joins global lenders to back $ 1 b syndicated term loan

From left: HNB Senior Vice President and Head of Wholesale Banking Majella Rodrigo and Senior Vice President and Head of Corporate Banking Manojith Weerasuriya join Aster Chemicals and Energy representatives, Planning and Optimisation Director Anawat Chansaksoong and Business Development Director Foo Kee Khoon at the signing ceremony of the strategic partnership

• Participates in sustainability-linked syndicated funding facility for Singapore’s Aster Chemicals and Energy

Hatton National Bank PLC (HNB) was part of a consortium of international lenders and credit funds that backed Singapore-based Aster Chemicals and Energy Ltd.’s successful $ 1 billion oversubscribed sustainability-linked syndicated term loan (SLL) facility. 

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. 

The initial $ 700 million facility was upsized by an additional $ 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 Ltd. (OCBC) served as Mandated Lead Arrangers, Underwriters, and Bookrunners, and as Sustainability Coordinators, ensuring the facility’s alignment with Aster’s ESG objectives.

HNB Senior Vice President and Head of Wholesale Banking Majella Rodrigo said: “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 and 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.

The transaction was facilitated by a senior team from Hatton National Bank PLC, comprising of Senior Vice President and Head of Wholesale Banking Majella Rodrigo, Senior Vice President and Head of Corporate Banking Manojith Weerasuriya, Executive Vice President and Chief Legal Officer Melody Wickremanayake, Assistant Vice President for Multinational and International Corporates Savanthi Gunasekera, and Relationship Manager Shewmay Chang.