DBS Hong Kong signs first credit deal with Sembcorp to diversify the Group’s source of funds for its growth in mainland China

In its move to diversify its funding sources and support growth in mainland China, Sembcorp Energy (Shanghai) Holding Co., Ltd. (“SESH”), the wholly-owned subsidiary of Sembcorp Industries (“Sembcorp”, or “The Group”), has signed a dual currency denominated revolving credit facility (RCF) with DBS Bank (Hong Kong) Limited (DBS Hong Kong).

The RCF is SESH’s first cross-border facility outside of mainland China, providing access to offshore funds for three years with a two-year extension option. This loan, the first between DBS Hong Kong and Sembcorp, marks a positive collaboration to fosters Sembcorp’s growth in mainland China.

DBS supports Sembcorp China’s expansion and strategic growth

Sembcorp, listed on the Singapore Exchange is a leading Asian energy player. Significant projects include the Sembcorp Tengeh Floating Solar Farm, one of the world’s largest inland floating solar farms when commissioned, and a 285MWh battery energy storage system, which is Southeast Asia’s largest energy storage system.

Prior to this DBS Hong Kong transaction, Sembcorp had a long-standing partnership with DBS, being a key client for decades. DBS has actively supported Sembcorp’s renewables business across Asia, extending several facilities for renewable energy projects and facilitated green and sustainability-linked bond issuances under the Group’s Multicurrency Debt Issuance Programme. 
Seeing many opportunities in mainland China’s renewables sector, Sembcorp seeks greater funding access within China, including two green loans from DBS Beijing Branch in 2023. 
 

Tackling the future of renewable energy with confidence

This recent signing between DBS Hong Kong and Sembcorp marks a pivotal moment in both companies’ growth. Establishment of this RCF diversifies Sembcorp’s funding source. DBS leverages its strong Asian network to drive positive change in fast-growing markets and support corporates prioritising sustainability. As Sembcorp aims to be a global leader in renewable energy, DBS remains a trusted partner, providing financial solutions that fuel growth and innovation in the renewable energy sector, contributing to a more sustainable future.