This sustainability-linked loan has a three-year tenure. When Xinyi Energy meets predetermined environmental, social and governance (“ESG”)-related sustainability performance goals, including green power generation and corresponding CO2 emission reduction metrics of its solar farms, it will be eligible for tiered preferential interest rates offered by DBS Hong Kong.
Xinyi Energy has been contributing to China’s dual carbon goals and global climate change mitigation actions. In 2021, 100% of its electricity sales came from renewable energy, equivalent to saving 786,000 tonnes of standard coal or planting 93,284,000 trees, which can bring 2.146 million tonnes of CO2 emissions reduction for the globe. The ESG efforts of Xinyi Energy are well recognised across the community. In 2021, it won the Pre-issuance Stage Certificate of the “Green and Sustainable Finance Certification Scheme” from the Hong Kong Quality Assurance Agency. It also received the “Best in ESG - Middle Market Capitalisation of Main Board” award from BDO Limited for two consecutive years.
Mr. LEE Shing Put, B.B.S., Chairman and Executive Director of Xinyi Energy, said, “As a leading new energy enterprise in China, we are pleased to work with DBS Hong Kong on this financing arrangement and together fulfil our commitment to sustainable development. Coming with set sustainable development goals, sustainability-linked loans encourage companies to strive to improve on ESG fronts. Their underlying principles agree perfectly with the sustainable development philosophy we steadfastly embrace. With its foothold in the renewable energy generation realm, Xinyi Energy will continue to leverage green and sustainable financing channels, actively seize development opportunities, steadily scale up its renewable energy power stations, as well as with determination shoulder social responsibilities. It pledges full support to China in attaining the dual carbon goals to benefit all stakeholders."
Mr. Alex Cheung, Managing Director and Head of Institutional Banking Group, DBS Bank (Hong Kong) Limited, said, "We balance long-term business value in a responsible manner. The fact that we signed a three-year HK$1 billion long-term green loan with Xinyi Glass last June, and now yet another sustainability-linked loan with Xinyi Energy is proof that DBS Hong Kong is backing fully Xinyi Group’s efforts to develop its green business and to serve as a role model for the industry."
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About DBS DBS is a leading financial services group in Asia with a presence in 18 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world. Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia“ award by Global Finance for 14 consecutive years from 2009 to 2022. DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting social enterprises: businesses with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping communities with future-ready skills and building food resilience. With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.About Xinyi Energy Holdings Limited (Stock Code: 03868)Xinyi Energy, a leading non-state-owned solar farm owner and operator in the PRC, mainly generates revenue from solar power electricity generation and sales of electricity to local subsidiaries of the State Grid and China Southern Power Grid, as well as receives management fees through the provision of operating and managing services of solar farms. All utility-scale solar farm projects owned by the Group are located in provinces with a strong demand for electricity, such as Anhui Province, Hubei Province, Henan Province, Hebei Province, Guangdong Province, Fujian Province, Shaanxi Province and Tianjin Municipality. As at 30 June 2022, Xinyi Energy owned a total of 29 solar farm projects with an aggregate approved capacity of 2,534 MW. The scale of solar farm projects operated and managed by the Group exceeded 3.88 GW. Xinyi Energy intends to maintain a high dividend payout ratio, and the Board intends to declare and distribute not less than 90% of the distributable income for each financial year. Its controlling shareholder is Xinyi Solar Holdings Limited (stock code: 00968), which held 48.76% of the Group's shares in issue as at 30 June 2022.For details, please visit www.xinyienergy.com
