China Hongqiao Group shines with Best Sustainability-Linked Loan Aluminium Award 2024

China Hongqiao Group Limited was recently honoured with the Best Sustainability-Linked Loan for Aluminium (China - Offshore) at The Asset Triple A Awards 2024, hosted by The Asset, a premier financial magazine.  

Christine Wong attended the prestigious awards ceremony at the Four Seasons Hotel Hong Kong on March 12, 2024, as Executive Director and Head of Corporate Finance, and Lucia Yu, Head of Investor Relations, representing China Hongqiao Group.

A noteworthy milestone

A noteworthy milestone for the group was issuing a Sustainability-Linked Loan (SLL) valued at HK$2.33 billion, with a Green Shoe Option available, in early 2024. As ESG gains prominence in the financial sector, SLLs continue gaining traction in major Asian and global markets.

The SLL introduced by China Hongqiao Group Limited represents the first focused on reducing carbon emissions in China's primary aluminium industry. This initiative demonstrates the group's consistent progress in environmental protection and sustainable business practices. The strong reception of the SLL highlights investors' robust confidence in the group's loan offerings.

As part of the loan project preparation, China Hongqiao Group has identified key performance indicators (KPIs) focusing on reducing greenhouse gas emission intensity (Scope 1 and 2). Annually, the group sets emission reduction targets based on the greenhouse gas emission intensity (Scope 1 and 2) reduction pathways outlined by the International Aluminum Institute (IAI), a global leader in the aluminium industry.

Obtaining dual Second-Party Opinions from Sustainalytics and S&P Global Ratings, two international credit rating agencies is significant for the group as it aligns with the Sustainability-Linked Loan Principles (SLLP).

Looking towards the future, China Hongqiao Group is committed to advancing in the ESG field. The group will continue to make steady progress in Sustainability-Linked Loans (SLLs), actively explore diverse financing methods, and allocate ample and adequate resources to promote green, low-carbon development. These efforts aim to drive sustainable growth and deliver exceptional value-added returns to its shareholders.

How the winners are selected

The Asset Triple A Awards follow a rigorous methodology in selecting winners, overseen by a board of adjudicators comprising professional investors and financial analysts. These awards aim to honour institutions and enterprises that have demonstrated outstanding business performance over the past year.

Widely regarded as one of the most reputable accolades in the Asian investment landscape, winning this award clearly acknowledges China Hongqiao Group's commitment to Environmental, Social, and Governance (ESG) principles. It underscores the group's significant achievements and positive impact in this area.

About The Asset Triple A Awards

The Asset Triple A Awards, presented by The Asset, a renowned international financial magazine, undergo a rigorous selection process. A board of adjudicators, consisting of professional investors and financial analysts, determines the winners through various methods such as questionnaire inquiries, institutional investor voting, and consultations with industry experts.

Evaluated across multiple criteria, including financial performance, corporate governance, social responsibility, environmental responsibility, information disclosure and communication, and investor relations, listed companies compete for recognition in the Asia Pacific region. These prestigious awards distinguish those who excel in their respective industries. Renowned for its authority and influence in Asian and global financial markets, The Asset Triple A Awards is a benchmark of excellence.