Mayer Brown advises lenders on landmark USD750 million ESG-linked syndicated loan facility to PT Vale Indonesia Tbk
This marks the Company’s entry into the international syndicated loan market, representing a significant milestone in strengthening the Company’s responsible mining practices in line with evolving global market standards. The facility attracted participation from a syndicate comprising of 14 international banks and was oversubscribed by 1.7 times, underscoring robust market confidence in the Company’s underlying business fundamentals and its sustainability-oriented strategy.
The SLL facility has been structured under the Company's Sustainability-Linked Financing Framework, which is aligned with internationally recognised best practices in sustainable finance. Two key performance indicators (KPIs) are embedded within the facility: a quantifiable reduction in carbon emissions intensity and an uplift in renewable energy consumption.
An independent Second Party Opinion provider has assigned both KPIs a "strong" rating, affirming their consistency with the Paris Agreement's 1.5°C trajectory, as referenced in independent assessments, and their contribution to Indonesia's Nationally Determined Contribution (NDC) targets. The assessment further confirms that the targets represent a material advancement beyond business-as-usual performance.
The Mayer Brown team was led by Banking & Finance partner Janelene Chen, who was supported by associates Gabriel Lim and Henderik Tan.
