ING pioneers APAC’s first sustainability-linked financing for a pure telecom tower company

Singapore, 29 January 2024 – ING has successfully converted a US$160 million term loan for GIP EM Ascend 2 Pte. Ltd. (GIP EM) into a sustainability-linked loan (SLL). Ascend Telecom, a leading telecom tower company based in India, is owned by GIP EM and its affiliates. This transaction marks APAC’s first SLL for a pure telecom tower company.

The SLL, maturing in 2028, reflects ING’s support for Ascend Telecom’s commitment to environmental, social and governance (ESG) goals, including emissions reduction, waste management and diversity. ING acted as Joint Sustainability Coordinator and Mandated Lead Arranger alongside Standard Chartered Bank (Singapore) Limited.

Anju Abrol, CEO and head of Wholesale Banking APAC at ING, commented: "As a pioneer in sustainable finance, we are proud to serve as Joint Sustainability Coordinator and Mandated Lead Arranger for this landmark transaction, supporting Ascend Telecom’s transition to a greener future. Our sector expertise and commitment to sustainability have enabled us to set a new industry benchmark in one of the world’s largest telecommunications markets."

India is one of ING’s 11 key markets in Asia Pacific, with a representative office established in November 2022 to tap into one of the world’s fastest-growing economies.

As a pure telecom tower company providing critical infrastructure for the telecommunications industry, Ascend Telecom’s sustainability targets are expected to influence broader industry practices, particularly among operators aiming to expand their customer reach. Energy efficiency in network infrastructure is a top priority, with base stations accounting for a significant share of energy consumption.

Globally, telecom companies consume between 2% and 3% of the world’s energy, with demand expected to rise due to increasing data usage. While 5G is more energy-efficient than 4G, the surge in network traffic may offset these gains. The International Telecommunication Union (ITU) has called on ICT organisations to set net zero greenhouse gas (GHG) emission targets by 2040, or by 2050 at the latest.

Sharad Malhotra, partner at Global Infrastructure Partners Emerging Market Fund and Director at Ascend Telecom, said: "We are proud to set a new benchmark with this sustainability-linked loan, contributing to the industry’s net zero ambitions. At Ascend, we recognise the urgency of climate action and are continuously working on initiatives to reduce emissions. This loan underscores our strong commitment to achieving our ESG objectives."

This landmark transaction builds on ING’s legacy of innovation, following the launch of the world’s first SLL in April 2017. In 2022 alone, ING mobilised over €100 billion in sustainable finance globally, advancing towards its goal of €125 billion annually by 2025. Recognised as a pioneer in sustainable finance, ING continues to guide clients in adopting more sustainable business practices.

Society is transitioning to a low-carbon economy. So are our clients, and so is ING. We finance a lot of sustainable activities, but we still finance more that’s not. See how we’re progressing on Opens in a new tabing.com/climate.