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StanChart launches first green loan aligned with HK Taxonomy
Syndicated facility with greenshoe option will be used to construct and operate solar power stations
The Asset 26 Jun 2024

Zhejiang CHINT Electrics, one of the largest private enterprises investing in photovoltaic power generation in China, has secured a three-year, euro-denominated green loan, with greenshoe option. A portion of the funds will be used to construct and operate solar power stations.

Standard Chartered Bank (Hong Kong) Limited acted as the sole mandated lead arranger, bookrunner and underwriter, green loan coordinator, initial original facility lender and agent for the syndicated facility. The amount of the loan was not disclosed.

The Hong Kong Quality Assurance Agency provided a second-party opinion, confirming that the transaction is well-structured and transparent.

It also says the loan’s technical indicators align with the Hong Kong Taxonomy for Sustainable Finance, published by the Hong Kong Monetary Authority in May this year, as well as the Green Loan Principles issued by the Loan Market Association, Asia Pacific Loan Market Association, and Loan Syndications & Trading Association.

“This syndicated green loan, the first of its kind aligned with the Hong Kong Taxonomy for Sustainable Finance, arranged and led by Standard Chartered, will be mainly utilized to support the operation, construction and development of our overseas photovoltaic power plants, fully demonstrating CHINT Electrics’ strong commitment to promoting sustainability,” says Jim Lin, vice-president of CHINT Electrics and finance director of CHINT Group.

“In the future, we will continue to base on the principles of innovation, collaboration, green, openness and sharing, to offer better products and services to our customers worldwide, while stepping up our contributions to the global sustainable development.”

CHINT Electrics is a leading company in China’s low-voltage electrical industry in terms of production and sales volume, and is one of the few providers of new energy solutions with strengths in both system and technology integration, Lin says.

“We strive to realize sustainable development, integrating China’s dual-carbon goals into our corporate development strategy, and actively participate in the Belt and Road Initiative to promote low-carbon transformation in the BRI countries,” he adds.

Helen Hui, head of client coverage, corporate and investment banking, Hong Kong, Taiwan and Macau, Standard Chartered, notes: “We hope the success of this transaction will encourage more green and sustainable debt issuers to adopt the Hong Kong Taxonomy for Sustainable Finance that helps global investors make better informed decisions as they are increasingly looking for sustainable investment opportunities in Asia. This is another milestone that consolidates the status of Hong Kong as a leading international green finance hub.”

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