Taipei Fubon becomes first domestic bank to issue SLLBy Kao Shih-ching / Staff reporterTaipei Fubon Commercial Bank (台北富邦銀行) yesterday approved a three-year sustainability-linked loan (SLL) to audio electronics maker Merry Electronics Co (美律實業), the first such loan granted by a local bank. DBS Bank Taiwan (星展銀行) provided NT$2 billion (US$70.66 million at the current exchange rate) of SLLs to AU Optronics Corp (友達光電) in 2019, followed by HSBC Bank (Taiwan) Ltd’s (匯豐台灣商銀) two SLLs totaling NT$450 million to Taya Group (大亞集團) and Sinbon Electronics Co (信邦電子) last year. A Taipei Fubon Bank sign is pictured in Kaohsiung on July 11, 2015. Photo: CNALike HSBC Taiwan and DBS Taiwan, Taipei Fubon would lower the loan’s interest rate if the borrower’s sustainability performance improves, which includes greenhouse gas emissions, power management and energy efficiency, the bank told the Taipei Times. HSBC Taiwan also encouraged its borrowers to use the loans for their operations related to green energy or greenhouse emissions reduction, but Taipei Fubon said it has no such requirements.

Source: Taipei Times March 08, 2021 15:56 UTC