GP Industries, a Singapore-listed rechargeable battery maker, has completed a three-year sustainability-linked loan (SLL) facility amounting to HK$660 million (US$84.52 million) with six banks in the Greater Bay Area.
Despite a challenging macroeconomic environment, the company’s inaugural SLL facility was favourably received by the market, resulting in an oversubscription. It is the largest loan of its kind in the consumer primary batteries sector in Asia.
Hang Seng Bank and United Overseas Bank were mandated as lead arrangers and bookrunners, and acted as SLL adviser and SLL coordinator respectively, collectively advising the borrower on sustainability performance targets. Bank of East Asia, Bank of Dongguan – Hong Kong branch, Tai Fung Bank and Shanghai Commercial & Savings Bank – Hong Kong branch also acted as lead arrangers.
The facility features a tiered incentive mechanism, which entitles GP Industries to interest reduction when specific sustainability targets are achieved. The company plans to use the loan proceeds to fund long-term investment in better manufacturing processes, improving operating efficiency, and becoming "greener" in its day-to-day operations.
"We will continue to improve our environmental and social performance, mitigate climate risks, and invest in more medium- to longer-term ESG and strategic initiatives, which deliver long-term value for our important stakeholders and shareholders. In embracing ESG as one of our core value drivers, I am confident that we will continue to make progress towards net zero and deliver benefits to our diverse stakeholders, our community and our planet," says Victor Lo, chairman and chief executive officer of GP Industries. Lo is also the chairman and CEO of Hong Kong-listed Gold Peak Technology Group, which owns 85.59% of GP Industries.