25 September 2024
BBVA serves as Green Loan Coordinator for CHINT Electrics’s first syndicated green term loan
Smart energy solutions provider Zhejiang Chint Electrics (“CHINT Electrics”) has successfully secured a EUR 600 million equivalent dual-currency green term loan facility through a syndicate of 20 banks, with BBVA acting as Green Loan Coordinator alongside ING Bank and Standard Chartered Bank.
The proceeds of the facility will be used to fund CHINT Electrics’ eligible green projects including the production of solar photovoltaic technology components and the generation, transmission and distribution of renewable energy.
The Hong Kong Quality Assurance Agency has provided a second-party opinion, confirming that the transaction aligns with the Green Loan Principles and complies with the Hong Kong Taxonomy for Sustainable Finance.
“We are proud to assist CHINT Electrics with its first syndicated green loan facility. Sustainability is at the core of our business strategy, and we remain committed to expanding our green finance offering to help our clients achieve their sustainable development goals and contribute to a greener future,” said Lei Li, head of China Client Coverage & Sustainability from BBVA.
Jim Lin, Vice President of CHINT Electrics and Finance Director of CHINT Group, said, “We strive to realize sustainable development, integrating China’s dual-carbon goals into our corporate development strategy, and actively participating in the Belt and Road Initiative (“BRI”) to promote low-carbon transformation in the BRI countries. This syndicated green loan, the first-of-its-kind aligned with the Hong Kong Taxonomy for Sustainable Finance will be mainly utilized to support the operation, construction and development of our overseas photovoltaic power plants, fully demonstrating CHINT Electrics’ strong commitment to promoting sustainability. In the future, we will continue to base on the principles of innovation, collaboration, green, openness and sharing, to offer better products and services to our customers worldwide, while stepping up our contributions to global sustainable development.”
CHINT Electrics is a world-renowned provider of smart energy system solutions and a leading green energy enterprise. It has a leading position in the downstream of the domestic photovoltaic industry and, over the recent years, it has been accelerating the deployment of renewable energy globally.
Sustainable finance at BBVA
As a demonstration of its responsibility in the fight against climate change, in 2018 BBVA approved its 2025 Goal, by which it pledged to mobilize a total of €100 billion in green finance, sustainable infrastructure, social entrepreneurship and financial inclusion. In 2021 the bank increased its target to €200 billion and in October 2022 again increased its target to €300 billion. By the end of June 2024 it had reached around €252 billion.
In the sustainable lending business, BBVA has been a pioneer and key driver, and is today one of the most active institutions globally. During the first half of 2024, the bank participated in 54 green and sustainability-linked loans globally, leading 22 of them as bookrunner for clients in different sectors, including relevant operations in Italy, France, Germany, Mexico, USA, Asia and Spain.