DBS Hong Kong supports Kwoon Chung Bus with the launch of HK$350 million sustainability-linked loan | 繁體

Hong Kong, 10 Apr 2024 - DBS Bank (Hong Kong) Limited (“DBS Hong Kong”) is pleased to announce that Kwoon Chung Bus Holdings Limited (“Kwoon Chung Bus”) (Stock Code: 306) has finalised its second sustainability-linked loan (SLL) with a total amount of HK$350 million during five-year tenor, in the support of integrating environmental, social and governance (ESG) considerations into its daily business operations.

Kwoon Chung Bus recognises the importance of balancing sustainable development and business growth to create long-term value for all stakeholders. Kwoon Chung Bus is committed to incorporating ESG considerations throughout daily operations and decision-making processes at all levels of management. As such, they prioritise the strength of health and safety of the employees and passengers, minimising potential environmental impact, and serving the communities in which it operates.

As the Mandated Lead Arranger (MLA) and SLL ESG advisor, DBS Hong Kong plays a critical role on liaising target intensity levels and standards with Kwoon Chung Bus, as well as obtaining a second party opinion (SPO) by Hong Kong Quality Assurance Agency (HKQAA). One of the targets is to reduce 9% of greenhouse gas emission intensity 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 (DCVs) within the company's fleet over the next five years.

Wallace Lam, Managing Director and Head of Institutional Banking Group, DBS Bank Hong Kong, welcomes to the collaboration. “We are proud to further our partnership with Kwoon Chung Bus and be the coordinating bank and ESG advisor of its second SLL. Hong Kong’s green and sustainable loan market has been expanding rapidly over the past few years. Our depth and breadth of knowledge in green financing and strong business acumen have positioned DBS Hong Kong as the ideal partner for green financing initiatives. We are committed to supporting Kwoon Chung Bus in their sustainability journey and ensuring the successful implementation of their ESG roadmap.”

Matthew Wong, BBS, Chairman of Kwoon Chung Bus Holdings Limited, said, “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. By strengthening the partnership with DBS Hong Kong, Kwoon Chung Bus aims at achieving sustainable growth and accelerating productivity while building a better and greener future for the next generations by adhering to ESG principles.”

In 2021, DBS Hong Kong and Kwoon Chung Bus signed its first SLL, reflecting the ongoing commitments to advance Hong Kong’s green agenda. DBS Hong Kong has also been appointed as the green advisor of Kwoon Chung Bus on this sustainability-linked loan during its three-year tenor.

About DBS
DBS is a leading financial services group in Asia with a presence in 19 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 15 consecutive years from 2009 to 2023.

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 Kwoon Chung Bus

The predecessor of Kwoon Chung Bus Holdings Limited (the “Company”) and its subsidiaries (collectively the “Group”) was founded by the late Mr. Wong Kwoon Chung with a small-sized car cleaning service in 1948. After over half a century of dramatic development, the Group has made its name in the transport history of Hong Kong as the largest non-franchised public bus and limousine operator in Hong Kong. The Company has been listed on the Main Board of the Stock Exchange since September 1996. As at 31 March 2023, the Group was operating approximately 1,334 non-franchised public buses and 417 limousines.

Given that logistics and tourism are two of the four pillar industries in Hong Kong and with the implementation of Mainland China’s two important national policies: the Guangdong-Hong Kong-Macao Greater Bay Area Plan and the Belt and Road Initiative, the Group has full confidence in its continuing development in the future.

The Company, through its flagship wholly-owned subsidiary, Kwoon Chung Motors Company, Limited (“KCM”), has made its strong presence in student, tour, hotel, resident, employee and cross-boundary non-franchised public bus services.

New Lantao Bus Company (1973) Limited (“NLB”), a 99.99%-owned subsidiary of the Company, is a franchised bus operator based in Lantau Island. NLB also runs the franchised cross-boundary routes B2, B4 and B6 via Shenzhen Bay Port and Hong Kong-Zhuhai-Macao Bridge Port.

In 2003, when the economy of Hong Kong was at a low ebb, the Group had cast a vote of confidence in Hong Kong and acquired 100% equity interest in Trans-Island Limousine Service Limited (“TIL”). TIL is a transport operator focusing mainly on cross-boundary non-franchised bus and limousine businesses while Intercontinental Limousine Company Limited (“ILC”) (which has taken up all business of Intercontinental Hire Cars Limited, a subsidiary of TIL) is a local limousine operator.

In 2011, TIL acquired 90% (up to 100% in December 2014) equity interests in Chinalink Express Holdings Limited and Chinalink Transport Group Limited (collectively “Chinalink”) and 100% equity interest in Hin Wan 991 group (“991”), respectively. Chinalink and 991 are renowned cross-boundary bus operators in the market.

In 2017, the Group formed Hong Kong-Zhuhai-Macao Bridge Shuttle Bus Company Limited (“HZMBSB”) with four other local operators. HZMBSB became a Hong Kong member of the consortium participated in the tender for the project in respect of the operator of shuttle bus for the boundary crossing facilities of the Hong Kong-Zhuhai-Macao Bridge.