OCBC Hong Kong provided an exclusive loan for this HK$500 million (or USD/RMB equivalent) financing, and also acted as a sustainability advisor.
Zhitong Finance App learned that on January 31, OCBC Bank (Hong Kong) Limited (“OCBC Bank Hong Kong”) and Cathay Pacific Junan International (01788) announced the signing of the first multi-currency sustainability-linked loan for the securities industry in Hong Kong and mainland China.
OCBC Hong Kong provided an exclusive loan for this HK$500 million (or USD/RMB equivalent) financing, and also acted as a sustainability advisor. The sustainable development loan is linked to a series of pre-set environmental, social and governance (ESG) goals of Cathay Junan International, including expanding the scale of Cathay Junan International's green finance business and increasing ESG-related training and development for employees to address important ESG issues of concern to the securities industry.
When the default ESG targets are met, Guotai Junan International will receive preferential interest rates. The annual performance of these ESG indicators will be verified by an external independent auditor and is in line with the sustainable loan principles of international standards.
Wei Yao, general manager of OCBC Hong Kong Corporate Banking and Financial Institutions, said, “This is the first multi-currency sustainability-linked loan in the securities industry market. It affirms OCBC's strategy to innovate and support ESG development in diversified industries. As a leading bank in sustainable financing in ASEAN and Greater China, we are pleased to cooperate with Cathay Pacific Junan to become a pioneer in this industry. We will continue to work with our customers to promote sustainability and provide tailor-made financing solutions to help them meet their expectations for sustainable development.”
Dr. Yan Feng, Chairman of the Board of Directors and Executive Director of Guotai Junan International, said, “Sustainable development is an important part of the development of Guotai Junan's international strategy, and we have been actively implementing ESG concepts at all levels of management. As the first company in the industry to sign a sustainability-linked loan, it shows our determination and commitment to promote the sustainable development of ourselves and the industry, and also showcased Guotai Junan International's outstanding ESG achievements. In the future, we will continue to adhere to the concept of 'finance for good', strive to build a responsible comprehensive financial platform, and create long-term value for investors and society as a whole through diversification.”