Geely Auto secures $400m sustainable club loan to accelerate green transformation

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Attention Quid Pro Quo Public Relations Officers, please

  • Geely Automobile Holding Ltd. (HK.0175) becomes first Chinese automaker to secure sustainable overseas club loan
  • Oversubscribed credit facility with participation from seven international lenders
  • The loan agreement will support the company’s R&D on technologies and the production of vehicles in the new energy segment

2022 August 26, Hong Kong and Hangzhou. Geely Automobile Holdings Ltd (HK.0175) (Geely Auto) has become the first Chinese automaker to secure a sustainable overseas club loan. The three-year, $400 million facility will be used to support Geely Auto’s technology R&D and vehicle production in the new energy segment, helping the company achieve its carbon neutral goal of here 2045.

The oversubscribed club loan – in which multiple lenders collaborate with the borrower to fund sustainable initiatives – had HSBC as sole global coordinator and joint sustainability structuring bank, as well as participation from six other global banks, namely BOC Hong Kong. , BNP Paribas, Bank of America, Nanyang Commercial Bank, Standard Charter and ANZ Bank. The oversubscription of the club loan reflects lenders’ confidence in Geely Auto’s growth prospects as well as the company’s strong appeal in capital markets.

The loan agreement follows Geely Auto’s launch in May 2022 of its “Sustainable Finance Framework”, outlining the company’s future issuance of green and sustainability bonds and loans. The issuance of the sustainable club loan of $400 million is an important step in this framework. The loan showcases innovation and the expansion of the company’s financing channels, opening a new path in the financing of green projects.

The financing diversification will further improve the company’s financial efficiency, reduce debt financing costs and provide strong financial support for Geely Auto’s development as it continues to expand into the new energy vehicle market.

Geely Auto aims to integrate sustainable development into its corporate governance. The company has set itself the target of achieving a 25% reduction in carbon emissions across the entire life cycle of vehicles by 2025 and carbon neutrality by 2045. To achieve its neutrality target carbon by 2045, carbon reduction plans have been formulated on the sourcing, manufacturing and end-user elements of Geely Auto’s operations. To date, Geely has revealed a diverse technology development path to achieve carbon neutrality, which includes pure-electric electric vehicles, hybrid powertrains, methanol green power and battery swapping.

This year, the company launched several new energy models, including efficient hybrids (Xingyue L, Emgrand L Hi-P, Lynk & Co 01 EM-F, Lynk & Co 01 EM-P), pure electric vehicles (Geometry E , Geometry G6, Geometry M6, Zeekr 001ME) and methanol hybrids (Emgrand Methanol Hybrid). The introduction of new models has already had a positive impact on the company’s performance with sales of new energy vehicles. From January to July 2022, Geely Auto’s new energy vehicle sales exceeded 140,000 units and in July, the company’s new energy vehicles accounted for a record 26.1% of all sales.

Geely Auto considers sustainability and carbon emission reduction as an important strategic objective in its corporate development. The company’s ESG performance has been recognized by many around the world. To date, Geely Auto has been selected as a constituent of “Hang Seng ESG 50 Index”, “Hang Seng Corporate Sustainability Benchmark Index” and “FTSE Social Responsibility Index”.

Geely Auto will continue to focus on the electric and intelligent transformation of the automotive industry, cooperate with global partners to improve its sustainable competitiveness, and contribute to global sustainability.

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About Geely Auto Group

Geely Auto Group is a major automobile manufacturer based in Hangzhou, China and was founded in 1997 as a subsidiary of Zhejiang Geely Holding Group (ZGH). The group manages several major brands including Geely Auto, Lynk & Co, Zeekr and Geometry. Geely Auto Group is also the global strategic partner of Malaysian national automaker PROTON.

The group employs over 50,000 people, operates 12 factories, five global R&D centers in Hangzhou, Ningbo, Gothenburg, Coventry and Frankfurt. The group also has five global design studios in Shanghai, Gothenburg, Barcelona, ​​California and Coventry respectively with more than 1000 employees in total. Geely Automobile Holdings, a subsidiary holding the brands Geely Auto, Geometry and 50% of Lynk & Co, has been listed on the Hong Kong Stock Exchange since 2005.

In 2021, brands under Geely Auto Group sold over 1.32 million units, with Geely Auto maintaining its position as China’s top-selling automaker for five consecutive years, Lynk & Co setting a new sales record annuals and a consumer electric vehicle brand. Geometry growing 145.3% as demand for electrified products grows globally.

Geely Auto’s majority shareholder is Zhejiang Geely Holding Group (ZGH), which is also the parent company of Volvo Car Group, Geely Commercial Vehicles Group, Geely New Technology Group and Mitime Group. Zhejiang Geely Holding Group is committed to vigorously pushing the development of world-renowned automotive and mobility technology brands providing high-quality products in multiple market segments to meet different levels of consumer demands.

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