DBS Bank Taiwan (星展銀行) has provided a two-year sustainability-linked loan (SLL) worth NT$1 billion (US$35.05 million) to Wistron Corp (緯創), with the loan’s interest rate set to fall next year at the soonest if Wistron’s sustainability performance improves, the lender said on Wednesday.
That marked DBS Taiwan’s second major sustainability-linked loan after a NT$2 billion loan to AU Optronics Corp (AUO, 友達光電) in 2019.
Similar to its loan arrangement with AUO, DBS Taiwan would lower the interest rate on Wistron’s loan if the debtor reaches several targets regarding environmental, social and governance (ESG) practice.
Photo: Lee Chin-hui, Taipei Times
The targets were set by DBS after discussions with the debtor, the bank said.
DBS would assign third-party institutions to review the contract electronics maker’s ESG practice based on the firm’s corporate social responsibility report this year.
If the results of the review indicate that the targets have been achieved, the interest rate would be reduced next year at the earliest, the bank said.
“We hope to provide an effective incentive for companies to advance their ESG programs,” DBS head of institutional banking group Tony Luo (羅綸有) said in a statement.
Wistron, whose products include handsets, servers, laptops, PCs, tablets, video game consoles and LCD modules, ranked among the top 5 percent in the Taiwan Stock Exchange’s corporate governance evaluation, the bank added.
DBS did not reveal the targets for Wistron, citing confidentiality agreements.
However, according to the Financial Supervisory Commission, an SLL approval should be tied to a debtor’s practices in environmental protection, social welfare, or corporate governance, such as greenhouse gas reduction, waste management, water efficiency and food security.
“It has been a global trend to balance business and sustainable development.” DBS Taiwan general manager Lim Him Chuan (林鑫川) said in a statement.
DBS Taiwan’s parent company, DBS Bank Ltd, has raised its sustainable finance target to S$50 billion (US$37.2 billion) by 2024, accelerating its sustainability agenda of helping clients incorporate sustainable business practices into their overall business strategy, Lim said.
DBS Taiwan was the first bank in the nation to issue an SLL, followed by HSBC Bank (Taiwan) Ltd (匯豐台灣商銀) and Taipei Fubon Commercial Bank (台北富邦銀行).
The former offered the loans to Taya Group (大亞集團) and Sinbon Electronics Co (信邦電子) last year, while the latter provided financing to Merry Electronics Co (美律實業) earlier this year.
Overall, the sustainable finance market in Taiwan is growing, albeit at an early stage, compared with green finance or regular finance, commission data showed.
Taiwan would remain in the same international network for carrying out cross-border payments and would not be marginalized on the world stage, despite jostling among international powers, central bank Governor Yang Chin-long (楊金龍) said yesterday. Yang made the remarks during a speech at an annual event organized by Financial Information Service Co (財金資訊), which oversees Taiwan’s banking, payment and settlement systems. “The US dollar will remain the world’s major cross-border payment tool, given its high liquidity, legality and safe-haven status,” Yang said. Russia is pushing for a new cross-border payment system and highlighted the issue during a BRICS summit in October. The existing system
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is expected to grow its revenue by about 25 percent to a new record high next year, driven by robust demand for advanced technologies used in artificial intelligence (AI) applications and crypto mining, International Data Corp (IDC) said yesterday. That would see TSMC secure a 67 percent share of the world’s foundry market next year, from 64 percent this year, IDC senior semiconductor research manager Galen Zeng (曾冠瑋) predicted. In the broader foundry definition, TSMC would see its market share rise to 36 percent next year from 33 percent this year, he said. To address concerns
Intel Corp chief financial officer Dave Zinsner said that a formal separation of the company’s factory and product development divisions is an open question that would be decided by the chipmaker’s next leader. Zinsner, who is serving as interim co-CEO following this month’s ouster of Pat Gelsinger, made the remarks on Thursday at the Barclays technology conference in San Francisco alongside co-CEO Michelle Johnston Holthaus. Intel’s struggles to keep pace with rivals — along with its deteriorating financial condition — have spurred speculation that the next CEO would make dramatic changes. That has included talk of a split of the company’s manufacturing
PROTECTIONISM: The tariffs would go into effect on Jan. 1 and are meant to protect the US’ clean energy sector from unfair Chinese practices, the US trade chief said US President Joe Biden’s administration plans to raise tariffs on solar wafers, polysilicon and some tungsten products from China to protect US clean energy businesses. The notice from the Office of US Trade Representative (USTR) said tariffs on Chinese-made solar wafers and polysilicon would rise to 50 percent from 25 percent and duties on certain tungsten products would increase from zero to 25 percent, effective on Jan. 1, following a review of Chinese trade practices under Section 301 of the US Trade Act of 1974. The decision followed a public comment period after the USTR said in September that it was considering
RSS