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Green Finance / Treasury & Capital Markets
DBS backs Kwoon Chung HK$350 million SLL
Hong Kong bus firm to adopt more environmentally friendly vehicles over five years
The Asset 11 Apr 2024

DBS Bank (Hong Kong) and Kwoon Chung Bus Holdings have agreed to a HK$350 million (US$44.68 million), five-year tenor sustainability-linked loan (SLL), the proceeds of which will support the bus company’s integration of environmental, social and governance (ESG) considerations into its daily business operations.

The bank, in its role as the mandated lead arranger and SLL ESG adviser, it says, played a critical role on liaising target intensity levels and standards with the company and obtaining a second-party opinion (SPO) by Hong Kong Quality Assurance Agency.

One of the loan’s sustainability targets is to reduce the company’s greenhouse gas emission intensity by 9% by 2025, and 27% by 2028 against the baseline year of 2023. This reduction will be achieved through the adoption of more environmentally friendly Euro VI diesel commercial vehicles within the company's fleet over the next five years.

“Hong Kong’s green and sustainable loan market has been expanding rapidly over the past few years,” says Wallace Lam, the bank’s managing director and head of its institutional banking group. “We are committed to supporting Kwoon Chung Bus in their sustainability journey and ensuring the successful implementation of their ESG roadmap.”

Matthew Wong, the bus firm’s chairman, adds: “Environmental practices, including greenhouse gas emissions and air quality, are the challenges that the industry is facing. The SLL represents a significant step towards integrating ESG considerations into our business operations.”

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