Cathay United Bank Inks Green Trade Loan For Sustainable Aviation Fuel

The Singapore branch of Taiwanese banking group Cathay United Bank (CUB) has 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), demonstrating CUB’s resolve to advance net zero sustainability.

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 US$1.99 billion.  

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 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.