SY Secures China’s First “Dual ESG Structure” Social and Sustainability-Linked Syndicated Loan with The Facility Amount of RMB500 Million


Shenzhen, 23 August 2022 – Sheng Ye Factoring Ltd* (“SYF”) (盛业商业保理有限公司), a wholly owned subsidiary of SY Holdings Group Limited (stock code: 6069. HK, hereinafter referred to as “SY” or the “Group”), has signed a dual Environmental, Social and Governance (“ESG”) RMB 500 million two-year syndicated loan facility led by Bank SinoPac, and jointly led by Bank of East Asia, Tai Fung Bank and Korea Development Bank. The loan was 1.7x over-subscribed, drawing strong interest from banks and other financial institutions within the region increasing to RMB 500 million from the original RMB 300 million.

Being China’s first dual-ESG syndicated loan, the facility integrates both social responsibility and sustainability-linked features, setting a precedent for future ESG-related supply chain financing and also further demonstrates SY’s ability in championing financial innovation within the supply chain ecosystem.

Aside from further expanding the Group’s funding channels and strengthening the Group’s ESG credentials, the syndicated loan integrates SY’s industrial Internet-of Things (“IIoT”) and digital finance business with the United Nations Sustainable Development Goals ("UN SDGs”). The loan proceeds will be used towards socially responsible projects in alignment with the Group’s Social Financing Framework. The facility also incorporates relevant sustainability-linked performance targets ("SPTs”) as part of our Sustainability-Linked Framework, which further enhances SY’s commitment towards providing more inclusive financing, reducing carbon waste and advancing community welfare efforts, as part of our broader social and sustainability agenda.

SY stated, "We are honored to enter into this cooperation with Bank SinoPac (China), Bank of East Asia (China), Tai Fung Bank, and Korea Development Bank. The syndicated loan not only helps broaden our financing channels, but also enables us to optimize our capital structure, and an endorsement of our business strategy and position in the capital markets. It also encompasses SY’s ongoing efforts in promoting inclusive finance, fulfilling social responsibility, and facilitating a greener supply chain ecosystem. The “dual ESG structure” of the syndicated loan also creates a solid foundation for the Group’s future financing projects.”

Bank SinoPac (China) commented, “As one of the leading supply chain technology platforms in China known for its robust risk management, big data technology and unparalleled ability to obtain high-quality supply chain assets, SY has always been regarded as one of the most valuable partners for banks when it comes to inclusive finance. This ‘dual ESG structure’ syndicated loan fully demonstrates the Group’s emphasis and determination on the social responsibility and sustainable development front. In order to advance our commitment to ESG in the financial sector, Bank SinoPac (China) will continue to assist our customers in deepening the management of such ESG initiatives for the motto of “Together, A Better Life.”

Bank of East Asia (China) said, “We have seen SY’s proactive efforts towards ESG and its innovative solutions in terms of facilitating capital to solve the financing issues of small and medium-sized enterprises, all of which are in line with the business principles of the bank. As one of the first foreign-funded corporate banks approved to be incorporated in Mainland of China, Bank of East Asia (China) hopes to continuously promote our ESG strategy in China with more innovations to serve the real economy and to provide our customers with stronger financial support so as to help them achieve their sustainability goals.”

SY will continue to cooperate with its funders, adhering to its ESG strategy and the corporate mission: “Making the supply chain more efficient and financing more inclusive.” The Group’s ambition is to build a leading supply chain technology platform and an industrial digital ecosystem, leveraging its position between the industry and financing sources, to achieve a win-win strategy linking banks and enterprises. The Group looks forward to more success stories relating to social-responsibility-related programs and sustainable development projects.

About SY Holdings

SY Holdings Group Limited (“SY Holdings” or the “Group”, stock code: 6069.HK) is a leading supply chain technology platform. Notable institutional investors include Temasek Holdings, China Taiping Insurance, Olympus Capital and Wuxi Communications Industry Group. Listed on the main board of the Hong Kong Stock Exchange, the Group is a constituent of the MSCI index series, Hang Seng Composite Index and is eligible for the Shenzhen-Hong Kong Stock Connect. SY Holdings is entrenched in the ecosystems of several large core enterprises and provides flexible supply chain financing services to over 10,000 SMEs. The total cumulative supply chain assets processed by the Group has been over RMB130 billion. The Group harnesses industrial internet of things to empower digital finance, striving to drive supply chain efficiency and make finance more inclusive.

About SY Holdings ESG and Sustainability Initiatives

As part of SY Holdings’ ongoing commitment to ESG, the Group launched its Social Financing Framework (‘SFF’) and Sustainability-Linked Financing Framework (‘‘SLFF’) on 22 August 2022, in which second party opinions were provided by leading independent rating agencies Morningstar Sustainalytics and SusallWave Digital Technology (盟浪可持續數字科技(深圳)有限責任公司respectively. The SFF and SLFF were designed in line with international best practices under the guidelines set out by the ICMA, LMA and LSTA[1].

The frameworks establish the governance mechanism for the future issuance of socially responsible and/or sustainability-link debt instruments will enable the Group to further align and integrate SY’s business and ESG strategies to further support the sustainable development of the supply chain ecosystem.

[1] ICMA: International Capital Markets Association; LMA: Loan Markets Association; LSTA: Loan Syndications and Trading Association