SMBCCN Successfully Assists Yixin Group in Issuing Its First Sustainability-Linked Offshore Bond

2024-12-20 13:00:15 · SMBCCN

Sumitomo Mitsui Banking Corporation (China) Limited (hereinafter referred to as "SMBCCN") has successfully acted as the Sustainability Advisor to Yixin Group Limited ("Yixin") in the issuance of its first Sustainability-Linked Japanese Yen Bond ("SLB") in the Hong Kong market. The 3-year bond issuance marks Yixin's debut in the offshore bond market and fully complies with the Sustainability-Linked Bond Principles(SLB Principles) (Note 1), while featuring an innovative sustainability-linked mechanism.

An SLB is a debt financing instrument where the issuer sets Sustainability Performance Targets (SPTs)in alignment with its sustainable development strategy. The issuer's performance against the SPTs is directly tied to mechanisms such as coupon rate adjustments or the implementation of donations. This structure incentivizes the issuer to achieve its SPTs, promoting sustainable economic activities and growth in environmental and social initiatives.

Yixin remains committed to innovation and upholding integrity, empowering the real economy through financial services and advancing the automotive sector through technology. The SPTs and sustainability-linked mechanism for this issuance focus on green, low-carbon transportation and rural revitalization, with indicators centered around financing transactions for new energy vehicles (NEVs). This initiative not only marks a pioneering effort in the auto finance industry but also reflects Yixin's dedication to fulfilling its social responsibilities and driving meaningful change with integrity and purpose.

In compliance with the SLB Principles, this bond issuance obtained a Second Party Opinion (SPO)from the independent external reviewer Hong Kong Quality Assurance Agency (HKQAA)(Note 2) prior to issuance. HKQAA assessed the appropriateness of the SPTs under the SLB Principles and will continue to evaluate the achievement of these targets for each relevant period.

Going forward, SMBCand SMBCCNwill remain committed to engaging with clients' sustainability management needs, providing tailored solutions, and actively contributing to the advancement of a sustainable society and market development.