Keppel Infrastructure Trust unit secures $612.5m loan for sustainability goals
The unit will also use loan proceeds to repay an existing loan.
Keppel Infrastructure Trust (KIT) unit, Keppel Merlimau Cogen (KMC), obtained a $612.5m loan facility.
The sustainability-linked loan will incentivise KMC to produce efficient energy and focus on its commitment to long-term sustainability and carbon efficiency.
KMC will use the proceeds of the loan facility to refinance its existing $700m loan due on 30 June 2027, of which $612.5m is outstanding.
The loan requires KMC to gradually pay back the loan amount and interest every six months, starting with smaller payments and increasing over time.