Standard Chartered Vietnam and Leo Vietnam enter into first sustainability-linked trade finance credit facility
Standard Chartered Vietnam and Leo Vietnam enter into first sustainability-linked trade finance credit facility
Standard Chartered Bank Vietnam announced that it has entered into a sustainability-linked USD trade finance credit facility with Leo Paper Products (Vietnam) Limited (“Leo Vietnam”).
Under the sustainability-linked framework, the Bank will extend US$13.5 million credit limit to finance the client’s working capital needs. Leo Vietnam commits to reduce its hazardous waste and total waste intensity to pre-determined levels over a designated period of time. Standard Chartered Bank Vietnam will provide financial incentives to Leo Vietnam if the targets are met.
Incorporated in Vietnam in 2019, Leo Paper Products (Vietnam) Limited is 100 percent owned by Hong Kong-based Leo Paper Group (“Leo”) - a leading global printing communications company.
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Nguyen Thuy Hanh, Managing Director, Head of Corporate, Commercial and Institutional Banking, Standard Chartered Bank Vietnam, said: “We are pleased to support Leo Vietnam’s endeavour to accelerate sustainable development. This is part of our strong commitment in meeting clients’ rising sustainability aspirations with innovative sustainable finance solutions. We are dedicated to contributing to the sustainable development of Vietnam and continue working closely with our clients and stakeholders to provide finance to where it matters most.”
Samuel Leung, Group Chairman at Leo, said: “As a leading global printing communications company, Leo is delighted to partner with Standard Chartered in our journey to build a green business chain from raw materials to consumers and from design to disposal under our unique ‘Green Harmony’ framework. The sustainability-linked structure with incentive in these transactions demonstrates our strong commitment to achieving substantial environmental performance targets.”
King Lai, Group CFO at Leo, also said: “Leo has been upholding ethical business practice and environmentally responsible operation for over 10 years, sharing the same vision with Standard Chartered which is actively promoting sustainability. It’s just the beginning. We look forward to making use of more sustainable finance products down the road to green not only our products but also our finances, becoming the role model for the industry.”
The credit facility is part of a wider agreement recently inked by Standard Chartered and Leo Paper Group (“Leo”), in which Leo, for the first time, obtains a sustainability-linked trade finance credit facility for its usage across Hong Kong, Mainland China and Vietnam and uses a sustainability-linked hedging transaction to manage foreign exchange risks.
