Taipei Fubon Bank signs first “sustainability-linked loan” with Merry Electronics to support corporate ESG and build a sustainability-friendly financial ecosystem
On March 5, Taipei Fubon Bank signed a “sustainability-linked loan” with Merry Electronics for a term of three years, making it the bank’s first loan linked to the Sustainable Development Index, which supports corporate ESG efforts. This leverages the bank’s financial influence to construct a financial ecosystem for sustainability and create a win-win situation for the bank and its partners.
Taipei Fubon Bank indicated that the sustainability-linked loan is based on corporate ESG performance, as the bank evaluates the loan applicant’s performance in terms of economic development, environmental protection, and social influence. The loan index is customized based on the industry characteristics of the loan applicant, encouraging it implement long-term management policies that promote green energy. Compared to traditional green bonds or green credits, sustainability-linked loans offer a wider scope of fund applications and provide an additional boost to corporate ESG developments.
As a leader in Taiwan’s electroacoustic industry, Merry Electronics serves clients around the world through distribution channels in Asia, Europe, and the Americas. With its vision to “deliver acoustic beauty and enrich human life”, Merry Electronics provides professional electroacoustic devices and views end-user health and safety, as well as environmental sustainability, as part of its corporate responsibility. It wrote its first CSR report in 2013 and participated in the Taiwan Corporate Sustainability Awards (TCSA) for the first time in 2020, winning bronze in the corporate ESG report category. Merry Electronics is putting more effort into ESG to help create a more sustainable earth.
Since it became a member of the Equator Principles Association in 2017, Taipei Fubon Bank has used ESG indicators to assess client sustainability risks. It calls for loan applicants to pay attention to environmental protection and social responsibility, and to expand green finance. The dollar amount and number of Taipei Fubon Bank’s wind power credits are the highest among domestic banks. Its cultivation of ESG has been recognized overseas and domestically, as seen by its winning of The Asset Magazine’s Best Green Loan, Global Brands Magazine’s Best Financial Brand for Social Inclusion, PwC Taiwan’s CSR Awards’ “co-prosperity with society - the most influential”, and the grand prize at Business Today’s Best Sustainable Development Awards in 2020.
In the future, Taipei Fubon Bank will continue to do its best and engage in the R&D of innovative sustainability-linkable financial products. Based on the premise of helping enterprise customers develop sustainably, it will provide them with diversified financial services so that society and industry can grow together.