DBS Bank Taipei Branch has signed a three-year, NT$2 billion (S$88 million) sustainability-linked loan with Taiwanese display manufacturer AU Optronics.
A sustainability-linked loan pegs the interest rate to sustainability performance targets.
This is the first such loan in Taiwan and the first for a tech company in the Asia-Pacific, the bank said yesterday. It was evaluated based on environmental, social and governance (ESG) performance metrics.
For DBS' sustainability-linked loans, corporates are evaluated based on an annual sustainability review report assessed by an external independent party, tracking the performance of corporates on ESG criteria.
When the borrower meets or exceeds predetermined ESG targets, the interest rate will be reduced. This way, borrowers not only share their commitment to sustainability but are also entitled to a competitive interest rate.
Unlike green loans, which are used to exclusively finance or refinance eligible green projects, capital from sustainability-linked loans can be used for general corporate purposes, said Mr Tony Luo, head of institutional banking group at DBS Bank (Taiwan).
AU Optronics has been listed on the Dow Jones Sustainability Index for nine consecutive years.
Listed on the New York Stock Exchange, the company specialises in making panel displays that are used for a variety of applications, including televisions, desktop monitors, mobile devices and public information displays.
ST Telemedia Global Data Centres (STT GDC) and Frasers Property (Thailand) Public Company (FPT) are investing 7 billion baht (S$302 million) to build a data centre in Bangkok.
The move builds on the joint venture partnership announced in April last year with Thai developer FPT, which was then known as Ticon. STT GDC is owned by ST Telemedia.
Located in Ramkhamhaeng, the centre of Bangkok, the new data centre will be Thailand's largest, with a gross floor area of 60,000 sq m.
The development will have two data centre buildings, with the first building designed with close to 30,000 sq m of gross floor area.
Construction of phase one of the project is expected to conclude in 2021, data centre service provider STT GDC said yesterday.
FPT president Sopon Racharaksa said the first data centre will be in Ramkhamhaeng to develop seamless connectivity and ease of access to business communities.