Xinyi Energy Signs First HK$800 Million Sustainability-Linked Loan with DBS Hong Kong
(20 October 2022, Hong Kong) - Xinyi Energy Holdings Limited ("Xinyi Energy"; stock code: 03868), a leading non-state-owned solar farm owner and operator in the PRC, has signed its first HK$800 million sustainability-linked loan with DBS Bank (Hong Kong) Limited ("DBS Hong Kong"), which will be used as Xinyi Energy's general working capital.
This sustainability-linked loan has a three-year tenure. When Xinyi Energy meets predetermined environmental, social and governance ("ESG")-related sustainability performance goals, including green power generation and corresponding CO2 emission reduction metrics of its solar farms, it will be eligible for tiered preferential interest rates offered by DBS Hong Kong.
Xinyi Energy has been contributing to China's dual carbon goals and global climate change mitigation actions. In 2021, 100% of its electricity sales came from renewable energy, equivalent to saving 786,000 tonnes of standard coal or planting 93,284,000 trees, which can bring 2.146 million tonnes of CO2 emissions reduction for the globe. The ESG efforts of Xinyi Energy are well recognised across the community. In 2021, it won the Pre-issuance Stage Certificate of the"Green and Sustainable Finance Certification Scheme" from the Hong Kong Quality Assurance Agency. It also received the "Best in ESG - Middle Market Capitalisation of Main Board" award from BDO Limited for two consecutive years.
Mr. LEE Shing Put, B.B.S., Chairman and Executive Director of Xinyi Energy, said, "As a leading new energy enterprise in China, we are pleased to work with DBS Hong Kong on this financing arrangement and together fulfil our commitment to sustainable development. Coming with set sustainable development goals, sustainability-linked loans encourage companies to strive to improve on ESG fronts. Their underlying principles agree perfectly with the sustainable development philosophy we steadfastly embrace. With its foothold in the renewable energy generation realm, Xinyi Energy will continue to leverage green and sustainable financing channels, actively seize development opportunities, steadily scale up its renewable energy power stations, as well as with determination shoulder social responsibilities. It pledges full support to China in attaining the dual carbon goals to benefit all stakeholders."
Mr. Alex Cheung, Managing Director and Head of Institutional Banking Group, DBS Bank (Hong Kong) Limited, said, "We balance long-term business value in a responsible manner. The fact that we signed a three-year HK$1 billion long-term green loan with Xinyi Glass last June, and now yet another sustainability-linked loan with Xinyi Energy is proof that DBS Hong Kong is backing fully Xinyi Group's efforts to develop green business and serve as a role model for the industry."