Bank of China Disburses First Sustainability-Linked Green Loan for Solar Project

Bank of China has extended the inaugural "Chugin Green Loan" – a financing product supporting renewable energy adoption and energy-saving equipment procurement. This innovative facility features interest rates dynamically adjusted according to borrowers' achievement of pre-defined sustainability targets, such as SDGs (Sustainable Development Goals).

On December 12th, the bank disbursed ¥70 million to electrical equipment design-and-build firm Daikoku Techno Plant (Hiroshima City). The loan proceeds will fund the installation of solar power generation equipment, with a 10-year repayment term. Daikoku Techno Plant has committed to generating approximately 240,000 kilowatt-hours annually by 2030 as its sustainability performance target.

This initiative aligns with Bank of China's SDG-oriented investment and lending policy established in 2009. The bank offers two sustainability-linked financing solutions:

1. Chugin Green Loans: Exclusively for environmentally beneficial projects

2. Chugin Sustainability Link Loans: For general corporate funding

The Sustainability Link Loan product has recorded 17 transactions to date, all incorporating interest rate adjustments based on corporate sustainability performance.