DBS Bank Taiwan (星展銀行) has inked a NT$2 billion (US$63.57 million) loan agreement with AU Optronics Corp (AUO, 友達光電), with interest rates set to move lower next year if the panel maker’s sustainability performance improves, the bank said yesterday.
The loan is the first sustainability-linked loan in Taiwan, DBS said in a statement.
The core value of a sustainability-linked loan is to provide an effective incentive for companies to advance their environmental, social and governance (ESG) programs, DBS head of institutional banking group Tony Luo (羅綸有) said in the statement.
Companies hoping to apply for a loan would be evaluated by an independent third-party agency based on the applicant’s ESG performance, Luo said.
If the results of the review meet or exceed the ESG targets set by DBS, the borrower’s interest rate would be reduced, Luo said.
In AUO’s case, DBS has set the targets after discussions with the company and would check if the borrower meets those targets next year, the bank said.
Given that AUO has already performed well in terms of corporate governance, environmental sustainability, science education, culture preservation, social citizenship and inclusive workplace, it would be hard for the company to make a big leap, so DBS has set reasonable objectives, it said.
As the first in Taiwan to sign a sustainability-linked loan, AUO is cementing its commitment to adopting a sustainable approach to business operations and being a role model for Taiwanese companies in this area, DBS Taiwan general manager Lim Him Chuan (林鑫川) said.
AUO has been listed on the Dow Jones Sustainability Index for nine consecutive years and has ranked among the top 5 percent in the Taiwan Stock Exchange’s corporate governance evaluation, Lim said.
There is a growing trend for companies to adopt more sustainable practices in their business operations, he said.
By launching a sustainability-linked loan in the nation, DBS hopes to encourage more customers to build businesses that will have a positive impact on the future, he said.
Unlike green loans, which are used to finance or refinance eligible green projects, capital from sustainability-linked loans can be used for general corporate purposes, which provides more flexibility to borrowers, DBS said.
The Singapore-based bank last year inked four sustainability-linked loans totaling more than S$600 million (US$435 million), demonstrating the bank’s commitment to sustainability while offering financial innovation to customers, it said.
Hypermarket chain Carrefour Taiwan and upscale supermarket chain Mia C’bon on Saturday announced the suspension of their partnership with Jkopay Co (街口支付), one of Taiwan’s largest digital payment providers, amid a lawsuit involving its parent company. Carrefour and Mia C’bon said they would notify customers once Jkopay services are reinstated. The two retailers joined an array of other firms in suspending their partnerships with Jkopay. On Friday night, popular beverage chain TP Tea (茶湯會) also suspended its use of the platform, urging customers to opt for alternative payment methods. Another drinks brand, Guiji (龜記), on Friday said that it is up to individual
UNCERTAINTIES: Exports surged 34.1% and private investment grew 7.03% to outpace expectations in the first half, although US tariffs could stall momentum The Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) yesterday raised its GDP growth forecast to 3.05 percent this year on a robust first-half performance, but warned that US tariff threats and external uncertainty could stall momentum in the second half of the year. “The first half proved exceptionally strong, allowing room for optimism,” CIER president Lien Hsien-ming (連賢明) said. “But the growth momentum may slow moving forward due to US tariffs.” The tariff threat poses definite downside risks, although the scale of the impact remains unclear given the unpredictability of US President Donald Trump’s policies, Lien said. Despite the headwinds, Taiwan is likely
READY TO BUY: Shortly after Nvidia announced the approval, Chinese firms scrambled to order the H20 GPUs, which the company must send to the US government for approval Nvidia Corp chief executive officer Jensen Huang (黃仁勳) late on Monday said the technology giant has won approval from US President Donald Trump’s administration to sell its advanced H20 graphics processing units (GPUs) used to develop artificial intelligence (AI) to China. The news came in a company blog post late on Monday and Huang also spoke about the coup on China’s state-run China Global Television Network in remarks shown on X. “The US government has assured Nvidia that licenses will be granted, and Nvidia hopes to start deliveries soon,” the post said. “Today, I’m announcing that the US government has approved for us
The National Stabilization Fund (NSF, 國安基金) is to continue supporting local shares, as uncertainties in international politics and the economy could affect Taiwanese industries’ global deployment and corporate profits, as well as affect stock movement and investor confidence, the Ministry of Finance said in a statement yesterday. The NT$500 billion (US$17.1 billion) fund would remain active in the stock market as the US’ tariff measures have not yet been fully finalized, which would drive international capital flows and global supply chain restructuring, the ministry said after the a meeting of the fund’s steering committee. Along with ongoing geopolitical risks and an unfavorable
RSS