Sustainable Finance

Sustainability Linked Loan; SLL

Use of proceeds

A corporate funding requirement, not specific to certain activities (e.g. general purposes), which is not involved in any CUB’s excluded industries or business activities.

Eligible borrowers

An enterprise with normal operation, financial structure and good credit, and is not involved in any activities violating “Direction of the sustainable economic activity identification”.

Criteria

According to LMA, APLMA and LSTA’s “Green Loan Principles” (GLP) and CUB’s “Corporate Banking Sustainable Loan Product Identification Principles”, a loan agreement of a qualified green loan must contain:

  • Key Performance Indicator (KPI)
  • Sustainability Performance Target (SPT)
  • Loan Characteristics
  • Reporting
  • Verification

Green Loan

Criteria

According to LMA, APLMA and LSTA’s “Green Loan Principles” (GLP) and CUB’s “Corporate Banking Sustainable Loan Product Identification Principles”, a loan agreement of a qualified green loan must contain:

  • Use of proceeds: Finance, re-finance or guarantee to new and/or existing eligible Green Projects
  • Process for green project evaluation and selection: The borrower should describe the process and standard regarding how it evaluated and selected the eligible Green Projects, and the environmental sustainability objective(s) of the Green Projects.
  • Management of proceeds: The proceeds should be tracked and managed in an appropriate manner to ensure that the fund is used for specific Green Projects. An appropriate manner includes but does not limited to opening a separate account or restricting remittance objectives.
  • Reporting: The borrower should recognize, keep and update the use of proceeds, and report the up-to-date information to lenders on an annual basis until the loan is mature or fully drawn. The annual report should include a list and a brief description of the eligible Green Projects, the allocation and expected allocation of the proceeds, and (optional) achieved environmental impact.

Eligible borrowers

An enterprise with normal operation, financial structure and good credit, and is not involved in any activities violating “Direction of the sustainable economic activity identification”.


Social Loan

Criteria

According to LMA, APLMA and LSTA’s “Social Loan Principles” (SLP) and CUB’s “Corporate Banking Sustainable Loan Product Identification Principles”, a loan agreement of a qualified social loan must contain:

  • Use of proceeds: Finance, re-finance or guarantee to new and/or existing eligible Social Projects.
  • Process for social project evaluation and selection: The borrower should describe the process and standard regarding how it evaluated and selected the eligible Social Projects, target population, and the social sustainability objective(s) of the Social Projects.
  • Management of proceeds: The proceeds should be tracked and managed in an appropriate manner to ensure that the fund is used for specific Social Projects. An appropriate manner includes but does not limited to opening a separate account or restricting remittance objectives.
  • Reporting: The borrower should recognize, keep and update the use of proceeds, and report the up-to-date information to lenders on an annual basis until the loan is mature or fully drawn. The annual report should include a list and a brief description of the eligible Social Projects, the target population, the allocation and expected allocation of the proceeds, and (optional) achieved social impact.

Eligible borrowers

An enterprise with normal operation, financial structure and good credit, and is not involved in any activities violating “Direction of the sustainable economic activity identification”.