HSBC Taiwan approves sustainability loans

  • By Kao Shih-ching / Journalist

HSBC Bank (Taiwan) Ltd (匯豐 台灣 商) approved two sustainability-related loans totaling NT $ 450 million (US $ 15.55 million) for Taya Group (大 亞 集團) and Sinbon Electronics Co (信 邦 電子), the bank announced yesterday. , adding that interest rates would fall if borrowers’ sustainability performance improved.

These are the first sustainability-related loans granted by HSBC Taiwan, he said.

While HSBC Taiwan has experience in providing green loans to domestic renewable energy developers to support their projects, the bank has started to focus on sustainability-related loans to meet the growing demand for ‘companies from other sectors that are considering undertaking sustainable development programs, he said.

“While we reward our clients who achieve their sustainability goals with special incentives, such as lower interest rates, many clients are more interested in taking out sustainable loans rather than ordinary business loans,” he said. said Stanley Hsiao (蕭 仲 程) responsible for commercial banking. the Taipei Times by phone.

HSBC Taiwan discusses its targets with borrowers before approval and instructs independent institutions to review and verify whether borrowers meet their targets the following year, the bank said.

Taya Group, an electric wire and cable supplier that is growing in the green energy sector, aims to use the loans to increase its solar energy production and reduce greenhouse gas emissions each year, and build a photovoltaic power plant in Tainan, the bank said.

Since Taya would sell power to state-owned Taiwan Power Co (台電), the bank would review the power company’s documents to confirm that Taya’s power generation would increase next year, said he declared.

Sinbon, which produces cables, connectors and modems, aims to deepen its operations in the green power sector by supplying more key components to solar and wind power developers and electric vehicle companies, has t -he declares.

HSBC Taiwan has said it will reduce the interest rate on Sinbon’s loan if the revenue generated from the sale of green energy-related products represents a larger share of the company’s overall sales and its performance in this area. of corporate social responsibility was increasing.

The companies have taken out the loans for terms of one to two years, the bank said, adding that an interest rate cut could take place next year at the earliest.

However, they must first pass exams from a third-party institution, such as France-based EcoVadis SAS, he said.

Receiving a sustainability loan was an important step for Taya to help improve its environmental, social and governance performance, Taya Chairman Ryan Shen (沈 尚 弘) said in a statement.

Sinbon has invested in green energy for the past three years and the loan is an opportunity to highlight its sustainability agenda, said President Joseph Wang (王紹 新).

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