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Green Finance / Treasury & Capital Markets
DBS Hong Kong signs HK$350 million SLL for Kwoon Chung Bus
Bus services operator to transition to more environment-friendly Euro VI diesel vehicles over next five years
The Asset 10 Apr 2024

Kwoon Chung Bus Holdings has secured its second sustainability-linked loan (SLL) amounting to HK$350 million (US$44.68 million) from DBS Bank (Hong Kong).

The five-year loan supports efforts by the Hong Kong-listed provider of non-franchised bus hire services to incorporate environmental, social and governance (ESG) considerations into its daily business operations and decision-making processes at all levels of management, DBS Hong Kong says.

As the mandated lead arranger and SLL ESG adviser, DBS Hong Kong plays a critical role in liaising with Kwoon Chung Bus on its target intensity levels and standards, as well as obtaining a second-party opinion from Hong Kong Quality Assurance Agency.

One of the company’s targets is to reduce by 9% its greenhouse gas emission intensity by 2025, and 27% by 2028 against the baseline year of 2023. It aims to achieve the reduction through the adoption of more environment-friendly Euro VI diesel commercial vehicles within the company's fleet over the next five years.

In 2021, DBS Hong Kong signed Kwoon Chung Bus’s first SLL. The bank was also appointed as green adviser to the company on the loan during its three-year tenor.

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