Cathay United Bank Singapore Branch Signs First Green Trade Loan With Apeiron to Boost Low Carbon Transport - A New Green Finance Milestone

SINGAPORE, Feb. 19, 2024 /PRNewswire/ -- Cathay United Bank(CUB) Singapore Branch saw its long-term commitment to green finance bear fruit in the final quarter last year after it closed a green trade loan deal with Apeiron Bioenergy (Apeiron), a leading player in Singapore's sustainable energy sector. The entire loan proceeds will support Apeiron's procurement of used cooking oil (UCO) for the production of sustainable aviation fuel (SAF), thereby demonstrating CUB's resolve to advance net zero sustainability.

As the transport hub of Southeast Asia and one of Asia's major financial centers, Singapore has spared no effort in promoting the Singapore Sustainable Air Hub Blueprint as well as clean energy for the aviation industry. In comparison to traditional aviation fuel, SAF has the potential to reduce carbon dioxide emissions in the air transport industry by up to 80%, thus making energy management all the more efficient. As the first bank in Taiwan to sign the Equator Principles, CUB is deeply committed to the UN Sustainable Development Goals, and has assisted its customers in their low carbon transition through diverse financial services. As of the end of 2023, the balance of CUB's sustainable loans to customers at home and abroad reached an astounding USD 1.99 billion.   

Apeiron is actively developing various biofuel solutions. Headquartered in Singapore, Apeiron's operations span across 10 countries, featuring a comprehensive value chain that includes storage, processing facilities, and biofuel refineries. Since 2017, Apeiron has supplied over 600 million litres of UCO for the production of biodiesel and renewable diesel, including SAFs, which has contributed to an estimated savings of 1.8 million tonnes of greenhouse gas emissions. In addition, Apeiron places a strong emphasis on traceability and adheres to stringent ecological and social criteria, thus ensuring traceability within the bioenergy sector. Apeiron's commitment to excellence is reflected in its green trade loan with CUB: the green trade loan was structured according to the Green Loan Principles published by the Asia Pacific Loan Market Association, Loan Market Association, and Loan Syndications and Trading Association; and the company's Green Financing Framework endorsed by Morningstar Sustainalytics, thereby ensuring proper management of the loan proceeds.

CUB is dedicated to creating a low-carbon economy, partnering with external institutions and actively engaging in carbon reduction initiatives. Maximizing the full extent of its core financial capabilities and influence, CUB has developed comprehensive climate finance solutions that offer customers green sustainable loans and support in building sustainable supply chains. Together, these efforts lower the threshold for customers seeking to reduce carbon emissions and assists them in developing net-zero businesses.

SOURCE Cathay United Bank