Case study: Joint mandated lead arranger and sustainability co-ordinator of EUR500 million syndicated SLL to Minor International
Background
Leading hotel operator, Minor International (MINT), is committed to becoming a net zero carbon organisation by 2050. MINT’s sustainability practices include the adoption of a 4R approach (Reduce, Reuse, Recycle, Replace). In accordance with these practices, MINT is refinancing existing debt with an innovative financing structure that aligns with MINT’s sustainability strategy. MINT is using a EUR500 million syndicated sustainability-linked loan (SLL) to refinance existing acquisition finance debt and for general corporate purposes and transaction related expenses. The SLL is linked to two of the company’s 2050 sustainability targets which support the United Nation’s Sustainable Development Goals 6, 7 and 9. The SLL aligns to MINT’s commitment to reduce carbon emissions in line with the Science Based Targets initiative.
This is not only the first SLL for MINT, but also the largest syndicated SLL to be issued in the Tourism and Leisure industry in Thailand and ASEAN to date. With our experience and expertise in structuring SLLs and our strong franchise in the region, Standard Chartered is proud to lead the syndicated SLL.
Standard Chartered’s role
Standard Chartered is acting as Joint Mandated Lead Arranger, Bookrunner, Underwriter and Sustainability Co-ordinator for the SLL.
Deal structure
The syndicated SLL includes KPIs which target a reduction in scope 1 and 2 GHG emissions intensity and water withdrawal intensity of MINT hotels, and have been verified with a Second Party Opinion from Morningstar Sustainalytics.
Sustainability linked derivative
We are also executing a sustainability–linked derivative that will help MINT manage financial risks, by allowing for a margin rate adjustment, if MINT does or does not achieve its’ targets.
As organisations transition towards a low-carbon future, the alignment of debt financing with sustainability objectives is becoming increasingly popular and Standard Chartered is well positioned to support our clients on this journey.