United Overseas Bank China brings home ESGBusiness Awards 2024 with successful green loan cases
Its green and sustainability-linked syndication loans have played a crucial role in advancing the ESG strategies of its clients, including a leading Chinese automotive manufacturer and a prominent clean and smart energy supplier.
UOB China won the Smart City Award - China category at the coveted ESGBusiness Awards 2024 for its successful assistance in helping its clients, including a Chinese multinational automotive manufacturing company and a leading clean and smart energy supplier, in implementing their respective ESG strategies through the grant of green and sustainability-linked syndication loans.
Supporting China's largest privately held automotive group
In June 2023, UOB China acted as a lead arranger and bookrunner for a sustainability-linked syndication loan to an auto finance joint venture company under China’s largest privately held automotive group. This loan is part of the client’s commitment to building a green, inclusive, and sustainable mobility ecosystem.
UOB China structured the loan with a stepped interest rate design linked to multiple sustainability performance targets (SPTs), encouraging the client to achieve higher levels of ESG performance. The key performance indicators (KPIs) focus on carbon neutrality, social responsibility, and SPTs for the launch of pure electric vehicles, with the client benefitting from reduced interest margins if specific targets are met.
This approach moves beyond a single sustainability performance goal by tying interest rates to the achievement of multiple ESG targets. The collaboration between UOB China and the client’s group, which began in 2017, further solidified in 2022 when the client published its Sustainable Finance Framework. This framework outlines the group’s future plans for green, social, and sustainability bonds and loans, reinforcing its long-term commitment to ESG goals.
Enabling clean energy innovation with a leading clean and smart energy supplier
UOB China also expanded its reach into the clean energy sector through its work with one of Hong Kong’s largest clean and smart energy suppliers. This client, a sustainable energy enterprise with over 160 years of experience, is dedicated to achieving carbon neutrality by 2050 through its zero-carbonation programme in China, aimed at creating a sustainable society through energy transition and innovation.
The partnership began in 2013 when UOB China provided short-term facilities to support the client’s liquefied natural gas (LNG) procurement. The client has expanded into the renewable energy sector since 2021, with photovoltaic (PV) as one key growing business. In 2022, UOB China provided green financing to fund its PV projects. This green solution is structured under the UOB Smart City Sustainable Finance Framework, marking the client’s first green term loan for PV business in China. By helping the client advance the renewable energy initiative, UOB not only deepens its support for the client’s sustainable business but also further strengthens its relationship with the client Group.
ESGBusiness Awards 2024 celebrates companies that are leading the way in building a sustainable future. It also highlights businesses that demonstrate outstanding commitment and achievement in environmental, social, and governance practices.
About UOB China
United Overseas Bank (China) Limited (UOB China) is a wholly-owned subsidiary of United Overseas Bank Limited (UOB). Headquartered in Shanghai, UOB China was incorporated into the People’s Republic of China on 18 December 2007. UOB China is rated ‘A+’ by Fitch Ratings and rated AAA by China Chengxin International Credit Rating. UOB China now has 16 branches and sub-branches in the major cities across China.
UOB China has adopted a customer-centric approach to create long-term value by staying relevant through its enterprising spirit and doing right by its customers. The Bank is focussed on building the future of ASEAN – for the people and businesses within and connecting with ASEAN.
UOB China connects businesses to opportunities in the region tapping UOB Group’s unparalleled regional footprint and leverages data and insights to innovate and create personalised banking experiences and solutions catering to affluent customers’ unique needs and evolving preferences. UOB China is also committed to help businesses forge a sustainable future, by fostering social inclusiveness, creating positive environmental impact and pursuing economic progress. UOB China believes in being a responsible financial services provider and is steadfast in its support of art, social development of children and education, doing right by its communities and stakeholders.
For more information about UOB China, please visit http://www.UOBChina.com.cn
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The ESGBusiness Awards is presented by ESGBusiness. To view the full list of winners, click here. If you want to join the 2025 awards programme and be acclaimed for your company's outstanding commitment and achievement in environmental, social, and governance (ESG) practices, please contact Julie Anne Nuñez at [email protected].
