DBS Hong Kong announced that Kwoon Chung Bus Holdings Limited has secured its first sustainability-linked loan, reflecting the bank and the transportation provider’s ongoing commitment to advance Hong Kong’s green agenda. DBS Hong Kong has also been appointed as the green advisor of Kwoon Chung Bus in this HK$348 million sustainability-linked loan during its three-year tenor.
The KPIs for the sustainability-linked loan include a 9% reduction of greenhouse gas emission intensity and an increased adoption of Euro VI diesel commercial vehicles (DCVs) within three years. This is part of Kwoon Chung Bus’ effort to replace no less than 70% of the older bus fleet with the more environmentally friendly classes in five years.
As Hong Kong is phasing out the older heavy duty models with Euro VI DCVs as they emit 80% less nitrogen oxides (NOx) and 50% less respirable suspended particulates (RSP) compared to the Euro V DCVs1. The establishment of such sustainability-linked loan will help contribute to reducing greenhouse gas emissions and enhancing the air quality in Hong Kong and help Kwoon Chung replace ageing buses with better-performing Euro VI DCVs.
DBS Hong Kong has been a major banking partner of Kwoon Chung Bus since the mid-90s and has supported Kwoon Chung Bus’ business expansion over the years. Founded in 1948 by the late Wong Kwoon Chung, Kwoon Chung Bus started as a car-cleaning service company and is now the largest non-franchised bus operator in Hong Kong, covering franchised bus services on Lantau Island, franchised cross-border routes via Shenzhen Bay Port and Hong Kong-Zhuhai-Macao Bridge Port.
Alex Cheung, Managing Director and Head of Institutional Banking Group of DBS Hong Kong, said, “DBS has long been a leader in driving sustainable business practices and responsible banking, both in our own regional operations in Asia and for our clients. We are proud to further our partnership with Kwoon Chung Bus by paving the way for its sustainable transition and accelerating positive environmental change in Hong Kong.”
Matthew Wong, BBS, Chairman of Kwoon Chung Bus Holdings Limited, remarked, “Over the decades, we have continuously adapted our businesses to the needs of the Hong Kong community for cleaner air and its future direction to attain zero vehicular emissions before 2050. We are confident that this loan by DBS Hong Kong will help assist in the progress of the green transportation roll-out in the city by modernising our fleets and reducing greenhouse gas emissions.”