Milestone in sustainable development
(25 October 2023, Hong Kong) - CIMC Enric Holdings Limited and its subsidiaries (collectively "CIMC Enric" or " Company ") (Hong Kong Stock Code: 3899. HK) are pleased to announce that the Company has successfully secured a EUR170 million (approximately RMB1.34 billion) sustainability-linked banking credit facility ("Sustainability-linked Credit Facility ") from ING Bank N.V. (“ING”). The loan interest rate and guarantee fee rate of the Sustainability-linked Credit Facility are linked to the ESG score obtained by the Company from influential international rating agencies . When the relevant ESG score reaches a certain level, the interest rate and relevant fees of the Sustainability-linked Credit Facility will be adjusted. This Sustainability-linked Credit Facility is the Company's first attempt at green finance based on its excellent ESG performance, which supports the Company in practicing its sustainable development strategy and business development and helps further reduce its financing cost and broaden its financing channel. It also demonstrates the recognition by the financial market for CIMC Enric's long-term sustainable development strategy and its ability to provide society and customers with green and low-carbon products, services, and solutions.
As a leading intelligent manufacturing company in the global clean energy, chemical and environmental, and liquid food industries, CIMC Enric has been committed to the Company's mission of "With technological advancement and product innovation, strive for cleaner energy, a more sustainable environment, and a better life," upholding the sustainable development of the environment and society as one of the core values of the enterprise.
In response to climate change, low-carbon and green development has gradually become a global investment theme. The green credit market has continued to launch financial products linked to ESG performance and sustainable development goals, with related products setting tiered interest rates and offering interest rate concessions to companies with excellent ESG performance. Data from the People's Bank of China revealed that as of the end of the second quarter of 2023, the balance of local and foreign currency green loans in China had exceeded RMB27 trillion, while the balance of green bonds exceeded RMB1.5 trillion, both of which are among the top in the world. Among the data, green transformation, green technology, and other sectors require up to RMB100 billion in funding. However, government funding can only cover a small portion of that amount. In the future, the primary approach will involve guiding and mobilizing the participation of social capital, harnessing the market's decisive role in resource allocation. It is estimated that an annual green investment of RMB3 to 4 trillion will be needed to achieve the "dual carbon" goal. Investment demand and opportunities will remain strong in the future despite China's rapid development of green finance. Looking forward, green finance will also effectively promote CIMC Enric's sustainable development strategy and business, creating long-term mutual value for customers and stakeholders.
The Executive Director and President of CIMC Enric, Mr. Yang Xiaohu, stated, “The signing of the sustainability-linked credit facility agreement with ING is a milestone in the Company's commitment to sustainability and demonstrates the financial market's recognition of the Company's efforts in sustainable development. CIMC Enric will support the Company's future business development through green finance, help realize the goal of sustainable development through green financial instruments, play an active role in promoting environmental protection and social responsibility, and further strengthen the Company's investment and development in the areas of renewable energy, clean technology, and environmentally-friendly projects. ”
James Poon, Country Manager for China and Hong Kong, ING APAC said, “We would like to thank CIMC Enric for the trust they have placed in us for structuring their first ever sustainable finance facility. ING has been collaborating with CIMC Group and CIMC Enric for almost 3 decades. We are proud to partner with a like-minded world-leading enterprise as sustainability is becoming a top priority for corporates in the Greater China region. With our sector expertise and innovative sustainable finance solutions, ING is well positioned to help our clients in their transition to a more sustainable future.”
