Sri Lanka’s HNB has joined a $1 billion sustainability-linked syndicated loan for Singapore-based Aster Chemicals & Energy, marking a key milestone in its global sustainable financing strategy.
HNB takes part in sustainability-linked syndicated loan to support Aster Chemicals & Energy
Sri Lanka’s Hatton National Bank (HNB) has announced its participation in a $1 billion sustainability-linked syndicated term loan for Aster Chemicals & Energy Pte Ltd, a Singapore-based energy company. The facility is structured to support environmental goals and strengthen cross-border financing partnerships.
The syndicated loan was arranged with DBS Bank and Oversea-Chinese Banking Corporation Limited (OCBC) as mandated lead arrangers, underwriters, and bookrunners, as well as sustainability coordinators. HNB highlighted that this transaction aligns with its strategic ambition to drive high-impact financing that supports global sustainability objectives.
HNB Senior Vice President and Head of Corporate Banking, Manojith Weerasuriya, said the collaboration with leading global institutions reflects the bank’s commitment to responsible banking and innovative financial solutions that create long-term value.
Aster Chemicals & Energy is a joint venture majority-owned by Chandra Asri Group with Glencore as the minority partner. The company operates a crude oil refinery and ethylene cracker in Pulau Bukom, along with downstream chemical facilities on Jurong Island. The proceeds from the syndicated loan are tied to reducing greenhouse gas emissions intensity and will be used for general corporate purposes, including rejuvenation projects for Aster’s assets in Singapore.
HNB Senior Vice President and Head of Wholesale Banking, Majella Rodrigo, emphasized that the bank’s participation demonstrates its strong commitment to sustainable and responsible financing. She noted that joining hands with global financial partners helps advance environmental stewardship while supporting economic resilience.
The total loan facility, initially set at $700 million, was increased to $1 billion following oversubscription. Other participating lenders included Clifford Capital, Mizuho Bank Ltd., PT Bank Mandiri (Persero) Tbk, PT Bank Negara Indonesia (Persero) Tbk, PT Bank Rakyat Indonesia (Persero) Tbk, Bangkok Bank PCL, First Abu Dhabi Bank PJSC (FAB), Indonesia Eximbank and Standard Chartered Bank. HNB did not disclose the exact size of its participation.
This transaction marks another step in HNB’s strategy to engage in sustainability-linked financing with international partners and support projects that align with global climate and energy transition goals.