DBS Hong Kong and Haier signed ESG-linked loan facility for sustainable development

DBS Hong Kong announced that Haier Group has signed its first ESG-linked term loan facility worth about USD 400 million, as part of both parties’ ongoing dedication to promoting sustainable development and a greener future. DBS Hong Kong will serve as Haier’s sole lender and sustainability advisor throughout the loan’s one-year tenor.

This transaction builds upon the strong business relationship that has been established between both companies over the years, as DBS continues to serve as Haier’s core offshore bank and its trusted advisor in its global business strategies. This agreement also positioned DBS Hong Kong as the first bank to pioneer Haier’s ESG-linked financing journey.

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.

As a world leading IoT ecosystem brand, Haier Group upholds the mission to create a value cycle for society. Its Haier Smart Home adheres to the 6-Green (6G) strategies – Green Design, Green Manufacturing, Green Operation, Green Recycling, Green Disposal, and Green Purchase – which integrate low carbon, circulation, energy conservation and emission reduction into its daily operations and product lifecycles. The Group also prioritises maintaining a harmonious relationship between society and the environment. As a core focus in its sustainability roadmap, it aims to provide customers with more energy-efficient products underpinned by innovation to help tackle climate change.

Alex Cheung, Managing Director and Head of Institutional Banking Group of DBS Hong Kong said, “As a long-standing partner for Haier in supporting its business expansion, DBS is most proud to help the company pursue a green transformation and fulfill its environmental responsibilities through this first ESG-linked loan. We hope to continue to be a trustworthy partner for Haier as we chart the journey to a low-carbon future.”

Mdm Xinzhi Shao, Vice President and Chief Financial Officer of Haier Group said, “At Haier, we recognise that responsible corporate practices are of vital importance to guaranteeing long-term success benefiting the company and the society. Our first ESG-linked loan with DBS Hong Kong demonstrates Haier’s commitment to ESG. Going forward, Haier will strive to bolster the implementation and adoption of our ESG goals.”