Shanghai (Gasgoo)- Volvo Cars’ subsidiary, Sixiangjia Financial Leasing (Shanghai) Co., Ltd. (“Sixiangjia”), has recently secured its first domestic RMB sustainability-linked syndicated loan at Volvo Cars’ Asia Pacific headquarters. The loan, totaling 650 million yuan and with a two-year term, marks a significant milestone for the company.
Photo credit: Volvo Cars
The syndicate leading the loan includes ANZ, Commerzbank, and Sumitomo Mitsui Banking Corporation, with Fubon Bank as the lead arranger. China Chengxin Green Finance (“CCXGF”) is overseeing the evaluation of ESG performance targets.
Sustainability-linked syndicated loans (SLLs) are a growing trend in the financial industry, linking loan conditions to a company’s ESG strategy. For Sixiangjia, the SPTs focus on promoting a low-carbon economy and corporate social responsibility, aligning with Volvo Cars’ global ESG goals in China.
Volvo Cars is committed to achieving net-zero greenhouse gas emissions by 2040, with Sixiangjia actively supporting this mission through comprehensive electrification and sustainability initiatives. The successful signing of the SLL signifies a significant step towards Sixiangjia’s green development journey, as it aims to integrate ESG principles into its leasing business and contribute to sustainable practices in the automotive industry.
Established in 2019, Sixiangjia plays a vital role in Volvo Cars’ aftermarket and value chain, offering flexible automotive usage solutions and diverse leasing services that have boosted Volvo’s sales in mainland China. The issuance of the sustainability-linked syndicated loan provides Sixiangjia with a stable funding base, enabling it to further support Volvo Cars’ financial leasing business and expand its presence in the Chinese market.
