Standard Chartered implements industry-leading Sustainable Account with Liquidity Management Structure for Musim Mas

Singapore, 23 May 2024– Standard Chartered has today announced the implementation of an industry-leading Sustainable Account with Liquidity Management Structure for Musim Mas, a Singapore-headquartered integrated palm oil company. This financial framework is designed to optimize the Group’s cash flow and working capital across its entities while incorporating environmental, social, and governance (ESG) factors.

This bespoke structure supports Musim Mas with the management of working capital mismatches across its Singapore entities, driving greater efficiency and integrating considerations that align with its commitment to sustainability. Musim Mas chose Standard Chartered to deliver on the liquidity management structure because the Bank’s global presence and capabilities will provide it with a one-stop-solution for its potential future liquidity management requirements.

Launched in Singapore in 2022, the Sustainable Account supports clients to embed sustainability objectives into their cash management while maintaining access to their funds. Balances in a Sustainable Account are referenced against Standard Chartered’s Sustainable Assets as captured in the Sustainable Finance Impact Report.

This specific structure won the Best Liquidity and Investments Solution at The Asset Triple A Treasurise Award 2024. The Asset Triple A Treasurise (Treasury, Trade, Supply Chain, Risk, ESG) Awards are industry recognitions awarded to companies and financial institutions that have launched or implemented initiatives in corporate treasury management, trade finance, supply chain and/or risk management.

Patrick Lee, CEO, Singapore and ASEAN, Standard Chartered, said, “We’re proud to co-develop this industry-leading and award-winning solution with our client Musim Mas, to enable it to effectively manage its liquidity requirements, while also supporting the company to integrate sustainability considerations into their cash management. This transaction is testament to Standard Chartered’s dedication to leveraging innovation when designing value-add solutions for our clients. We look forward to supporting more businesses to embed sustainability in their liquidity management.”

Alvin Lim, Group CFO, Musim Mas Group, said, “At Musim Mas, sustainability is at the core of what we do. We firmly believe that a responsible business can both be profitable and good for the planet. Working with like-minded partners help us to drive change and deliver on our commitment to net zero, aligning to the Science-Based Target initiative (SBTi) and the Agriculture Sector Roadmap to 1.5°C.

Standard Chartered has been very supportive to the Group’s banking needs. It has been a joy collaborating and brainstorming with Standard Chartered on this unique liquidity management solution that breaks the boundaries of a typical single header funded structure to embed sustainability in the liquidity management structure. Through the co-creation, we now have a tailored solution to address the unique treasury needs of the Musim Mas Group entities in Singapore to enhance cash visibility and efficient use of cash for our daily liquidity requirements.”

 About Standard Chartered

Standard Chartered Bank in Singapore is part of an international banking group, with a presence in 53 of the world’s most dynamic markets for more than 160 years and serving clients in a further 64. Our purpose is to drive commerce and prosperity through our unique diversity, and our heritage and values are expressed in our brand promise, here for good.

The Bank has a history of 165 years in Singapore, where we opened our first branch in 1859. In October 1999, we were among the first international banks to receive a Qualifying Full Bank (QFB) license, an endorsement of the Group’s longstanding commitment to our business in the country.

Singapore is home to the majority of our global business leadership, our technology operations, as well as SC Ventures, our innovation hub. In 2013, the Bank transferred our Singapore Retail and SME businesses to a locally incorporated subsidiary, Standard Chartered Bank (Singapore) Limited (“SCBSL”). And in May 2019, we fully consolidated our business operations in Singapore through the transfer of our Commercial Banking, Corporate & Institutional Banking and Private Banking businesses to SCBSL. SCBSL is one of the highest-rated banks globally: A1/Stable by Moody’s Investor Services, A+/Stable by Standard & Poor’s and A+/Stable by Fitch Ratings. In August 2020, we were the first and only bank to be awarded the “Significantly Rooted Foreign Bank” (SRFB) status by the Monetary Authority of Singapore. In December 2020, we were granted enhanced SRFB privileges, in recognition of the significantly higher degree of rootedness exceeding the SRFB baseline criteria.

In September 2022, we launched Trust Bank Singapore Limited (Trust), our digital bank venture in partnership with FairPrice Group. Trust offers a wide range of products and features for retail customers, including credit cards, personal loans, savings accounts, insurance and money insights. Trust has become one of the world’s fastest-growing digital banks and amassed over 700,000 customers, equivalent to 14% of the Singapore market, by end-2023.

In Singapore, we support both individual and corporate needs to build wealth and drive commerce at every step of their journey. We do this by offering an entire range of financial services across Wealth and Retail Banking as well as our Corporate and Investment Banking teams. The Bank has a network of 11 branches, including 4 Priority Banking Centres, 1 International Banking and Priority Private Centre, and 21 ATMs. For more information, please visit www.sc.com/sg.

About Musim Mas

Musim Mas Group is an integrated palm oil company, operating in 13 countries. From plantations, to mills, refineries, kernel-crushing plants, oleochemicals, and specialty fats plants, Musim Mas manufactures palm oil products and value-added derivatives. Musim Mas is one of the largest domestic producers and exporters in Indonesia. Inter-Continental Oils and Fats (ICOF), a member of Musim Mas Group, undertakes global marketing activities.

The Group is committed to sustainability and was the first company with significant operations in Indonesia to join Roundtable on Sustainable Palm Oil (RSPO) in 2004. Committed early to emissions reductions, Musim Mas is a signatory to the Agriculture Sector Roadmap to 1.5 Degrees convened by the Tropical Forest Alliance. The roadmap aims to halt commodity-linked deforestation in line with the 1.5-degree pathway while enhancing the livelihoods of smallholder farmers and supporting the sector’s transformation toward forest-positive land-use management. In January 2024, Musim Mas announced that it will strive to achieve net zero by 2050, aligning with climate science as per the Science Based Targets initiative (SBTi). Musim Mas also manages the most extensive independent smallholder programs in Indonesia.

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