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Xinyi Glass Successfully Arranges First Green Club Loan that Covers Development of Belt and Road and Greater Bay Area Initiatives

2019-04-02 18:08:08


Obtains HK$1.2 Billion Club Loan Represents Largest Green Financing Amount Secured by Listed Company from the Industrial Sector

(Hong Kong, 2 April 2019) – Xinyi Glass Holdings Limited (“Xinyi Glass” or the “Group”) (stock code: 00868.hk), a leading integrated automobile glass, energy-saving architectural glass and high-quality float glass manufacturer, has announced that it has successfully signed a HK$1.2 billion four-year green loan with four major banks. This follows on the securing of a HK$1.2 billion three-year syndicated loan by the Group in December 2018 (Sumitomo Mitsui Banking Corporation acted as the mandated lead arranger bank, which involved arrangements with financial institutions including State Bank of India (Hong Kong Branch), Credit Industriel et Commercial (Hong Kong Branch), Korean Development Bank Asia and Hua Nan Commercial Bank (Macau Branch)). To support the national plan for the Belt and Road Initiative and development of the Greater Bay Area, Xinyi Glass has capitalized on its green technology and environmentally-friendly products to align with the green finance strategy implemented by the Hong Kong Government. The Group has entered the green finance project in accordance with the framework agreement and following its accreditation with the Green Finance of Pre-Issuance Stage Certificate from Hong Kong Quality Assurance Agency (“HKQAA) on 25 March 2019. The green loan is the largest financing amount secured by a listed company from the industrial sector in Hong Kong.


HSBC, Mizuho Bank, Mitsubishi UFJ (Hong Kong Branch) and Agricultural Bank of China (Macau Branch) are the mandated lead arranger banks of this green loan. HSBC, Mizuho Bank and MUFG (in no particular order) are also the bookrunners and green finance advisors. On 29 March 2019, the Group signed an agreement with the aforementioned four banks, which reflects its determination to further promote environmental development. This green loan is the first financing scheme covering development of the Belt and Road and Greater Bay Area initiatives. The fund will mainly be used for three projects, namely, expand the Melaka production base project in Malaysia, establish low-emission glass production line projects in China, and finance the Beihai production base project in Guangxi.

Dr. LEE Yin Yee, B.B.S., Chairman of Xinyi Glass, said, “We have been persistently promoting environmental protection. The green loan will not only help drive sustainable development and renewable energy development, but will also complement the country’s Belt and Road and Greater Bay Area development plans, as well as facilitate the construction of our assets in Malaysia, the Greater Bay Area and other PRC regions. With support from professional groups involved in this loan, including the team from HKQAA and the four major banks, the Group has been able to complete the largest green finance exercise among listed companies from the industrial sector, and just within one week we received the Green Finance of Pre-Issuance Stage Certificate issued by HKQAA. Looking ahead, the Group will utilize the funds from the loan to continuously and effectively adhere to our development philosophy of ‘Leading a Green New Life’, which we will create an energy-saving and green society.”