Trailblazing Low Carbon Transition for Asia-Pacific Businesses: Cathay United Bank's 2024 Q1 SLL Growth Exceeds 30% YoY
TAIPEI, July 10, 2024 /PRNewswire/ -- In response to climate change, Cathay United Bank has set net-zero targets to reduce environmental, social, and corporate governance risks, demonstrating its unwavering commitment to environmental sustainability and to creating a positive economic, social, and environmental impact. Aside from assisting Taiwanese businesses with their energy transition, the Bank has also actively engaged in green finance deals both at home and overseas. The Bank's sustainability loan balance reported a 15% year-on-year (YoY) growth since 2022, and the amount of undertaken sustainability-linked loans (SLLs) exceeded 30% in the first quarter of 2024. The Bank has been pivotal for Asia-Pacific corporations in 18 industries, including the Greater China region, Singapore, Malaysia, Vietnam, and the Philippines in moving one step closer to decarbonization and the 2050 net-zero goal.
Alan Lee, President of Cathay United Bank, remarked, "As a member of the Coalition of Movers and Shakers on Sustainable Finance, Cathay United Bank aspires to become the industry's leading green finance brand. In addition to our sustainability engineering projects in Taiwan, we seek to better align ourselves with the international markets and serve as a guiding force for Asia-Pacific corporations in their net-zero transition. By focusing on creating a sustainable financial ecosystem and collaborating with our corporate partners to achieve clean energy and climate action goals, we will achieve sustainability together".
In an effort to encourage corporations to invest in new energy and carbon reduction opportunities, Cathay United Bank has been eager to promote ESG project financing with corporations from all over the globe, and has sought to maximize the impact of sustainable finance by focusing on countries in Taiwan's New Southbound Policy, such as the Philippines, Singapore, and Vietnam. For instance, the Bank's Manila Branch made history by being the first Taiwanese bank to sign a SLL in the Philippines, signing a SLL of PHP 1.25 billion with PrimeAsset, a holdings company under the prominent Villar Group; this SLL used by PrimeWater, a subsidiary of PrimeAsset, was awarded a Stevie Award in 2023 for excellence.
Cathay United Bank partnered up with the Asian Development Bank to complete Vietnam's largest onshore wind farm financing project. In 2023, the wind farm managed to generate over 120% of its planned power generation, effectively offsetting 215,000 tons of carbon dioxide emissions annually and earning itself the "Renewable Energy Deal of the Year Wind" award from the renowned international financial journal, The Asset. This project holds great significance for the financial industry, as it marks Taiwan's first venture into Southeast Asia's green finance market. In 2024, the Bank's Singapore Branch signed the first green trade loan contract with Apeiron Bioenergy, to help them produce renewable aviation fuel.
As for the future, Cathay United Bank will continue its efforts to develop sustainable finance in Taiwan and align itself more closely with international sustainability frameworks. By establishing an environmental impact control mechanism for large project finance deals, the Bank can integrate the values of sustainability into its corporate credit process. With its heart set on becoming a pioneer of sustainable finance in the Asia-Pacific, the Bank aspires to leverage its financial influence to provide businesses, both domestic and abroad, with the opportunity to achieve both financial success and sustainability.
SOURCE Cathay United Bank
Share this article