With an eye to promoting sustainable development and a greener future, DBS Hong Kong and China’s Haier Group have signed Haier’s first ESG-linked term loan facility, worth approximately US$400 million.

The transaction, for which DBS Hong Kong will serve as Haier’s sole lender and sustainability adviser throughout the loan’s one-year tenor, builds on the companies’ strong business relationship – DBS serves as Haier’s core offshore bank and its global business strategy adviser.

The ESG performance indicator for the loan contributes towards China’s pledge to become carbon neutral by 2060. Under the agreement, Haier will commit to reducing its energy consumption per business unit during the loan’s tenor.

Haier, a multinational home appliances and consumer electronics company, via its Haier Smart Home brand, adheres to a six-green strategy – design, manufacturing, operation, recycling, disposal and purchase – that integrates low carbon, circulation, energy conservation and emission reduction into its daily operations and product lifecycles, with the goal of providing customers with more energy-efficient products to help tackle climate change.