SKT secures $238m sustainability-linked loan from DBS Bank

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The loan will fund expansion of environment-friendly infrastructure.

South Korean ICT company SK Telecom has secured its first sustainability-linked loan from the DBS Bank, worth $238m.

The three-year loan also features interest discounts pegged to pre-determined environmental, social and governance targets, such as in carbon emissions management and workplace health and safety metrics.

“We have extended our ESG management to our financing strategy by receiving the sustainability-linked loan from DBS,” Yoon Poong-young, Chief Financial Officer of SKT, said.

“We will do our best to create a virtuous cycle where proactive ESG-related efforts are translated into greater enterprise value.”

The loan will be used to fund corporate activities such as the expansion of environment-friendly network infrastructure.

“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,” DBS Group Head of Institutional Banking Tan Su Shan said.

In line with its sustainability goals, the DBS has committed $50b in renewable, clean-energy and green projects by 2024.