SG Morning Highlights | ST Engineering to Invest $120 Million in New Sustainable Data Centre at Jalan Boon Lay

Singapore shares opened lower on Wednesday. The $FTSE Singapore Straits Time Index (.STI.SG)$ dropped 0.11 percent to 3322.75 as at 9:20 am.

$ST Engineering (S63.SG)$: ST Engineering will invest $120 million over the next three years in a new data centre with high security and energy efficiency standards. The data centre, which is expected to be operational in 2026, will increase ST Engineering's total capacity to more than 30MW in Singapore. The seven-storey, 6,000 sq ft facility will be the group's fourth data centre in Singapore and will be located within ST Engineering Land Systems' premises in Jalan Boon Lay. The new data centre will feature 2,400 sq m of solar panels on the eastern facade of the building to power much of the building's electrical requirements. ST Engineering President and CEO Vincent Chong said the building is designed to operate with a power usage effectiveness of 1.25, "well within" the Building and Construction Authority's Green Mark Platinum threshold standard of 1.3.

$Keppel (BN4.SG)$: A subsidiary of Keppel Infrastructure Trust has obtained a sustainability-linked loan of S$612.5 million, and the proceeds will be used to refinance a loan. The interest cost of the loan is designed to incentivise the subsidiary, Keppel Merlimau Cogen, to produce energy efficiently and demonstrate its continued commitment to long-term sustainability and carbon-efficient performance. The entire proceeds of the loan will be used to repay the outstanding S$612.5 million portion of a loan that matures on June 30, 2027. The subsidiary will make payment of approximately equal debt-servicing amounts (principal and interest) every six months under the green loan.

$Olam Group (VC2.SG)$: Olam Group's indirect 64.6% owned subsidiary, Olam Agri, has secured a loan facility of US$550 million with a tenor of three years. The facility was obtained by Olam Agri's subsidiaries, Olam Global Agri and Olam Global Agri Treasury, and will be used to refinance Olam Agri's existing loans and for general corporate purposes. The facility was initially guaranteed by Olam Group, but it will be transferred to Olam Agri following Olam Agri's planned initial public offering and demerger from Olam. Olam announced the reorganisation of its business to create two new operating groups, Olam Food Ingredients and Olam Global Agri, in 2020, with plans to maximise long-term shareholder value via carve-out and capital-raising options, including the IPO of the two units on a sequential basis.