TCL Technology pioneers the first sustainability-linked offshore syndicated loan in China's display panel industry

SHENZHEN, China, June 30, 2025 /PRNewswire/ -- Recently, TCL Technology Group Co., Ltd. ("TCL Technology", the "Group") announced the Group's first sustainability-linked syndicated loan, with a total amount of US$200 million. This is considered to be the first sustainability-linked offshore syndicated loan in China's display panel industry. Bank of China (Hong Kong) Limited, The Hongkong and Shanghai Banking Corporation Limited ("HSBC") and Standard Chartered Bank (Hong Kong) Limited served as Joint Mandated Lead Arrangers and Bookrunners and Sustainability Coordinators, and DNV Business Assurance Limited ("DNV") served as an independent external reviewer and provided a satisfactory second-party opinion on this sustainability-linked loan structure.

The interest margin of the facility is linked to a series of core ESG performance indicators of TCL Technology, which are key performance indicators of the industrials and manufacturing industry recognised by the International Capital Market Association ("ICMA"). Meanwhile, TCL Technology has set up a two-way interest margin adjustment mechanism that includes both rewards and penalties, reflecting TCL Technology's strong commitment to implementing the ESG strategies and leading the sustainable development of the high-tech industry.

The sustainability-linked offshore syndicated loan garnered significant interest from 19 leading Chinese and foreign banks, with oversubscription of more than 3 times the initial target.

Li Jian, CFO of TCL Technology, said, "The successful closure of the sustainability-linked offshore syndicated loan is an important milestone for TCL Technology to promote sustainable development. It also reflects the Group's long term commitment to strengthening its ESG management system and sustainable development capabilities. We will take this opportunity to deepen the use of sustainable finance tools to improve the efficiency of capital allocation, and accelerate the transformation processes of sustainable manufacturing and low-carbon operations. TCL Technology will continue to uphold an open and cooperative attitude and explore innovative paths for the integration of corporate finance and sustainable development with all stakeholders."

Wei Xue, Vice President and ESG Director of TCL Technology, said, "We are very pleased to have successfully closed the industry's first sustainability-linked offshore syndicated loan. Sustainable development is TCL Technology's long-term business strategy and a core component of TCL brands globally. We hope to take the syndicated loan as an opportunity to combine corporate finance with ESG strategy, continuously improve the Group's ESG management capabilities, further enhance its operational capabilities to navigate through cyclical challenges under a complex and ever-changing market environment, and spread stronger wings to overcome the headwind. We look forward to working hand in hand with our partners to make every innovation a step towards a net-zero-carbon and sustainable future."

In 2024, TCL Technology officially joined the United Nations Global Compact ("UNGC"), and pledged with companies and other stakeholders from nearly 170 countries to fulfill the 10 principles of the UNGC covering human rights, labour standards, environment and anti-corruption, and to make continuous contributions to the realisation of the United Nations Sustainable Development Goals. At the same time, the Group has taken a key step to establish the "Strategy and Sustainability Committee", escalated ESG management to the Board level, and established the "ESG Working Committee" to deepen the integration of environmental, social and governance aspects in the Group's strategic planning and daily operations management. Adhering to the belief that "sustainable development is not optional but necessary", TCL Technology is committed to exploring and applying digital tools to achieve more accurate and efficient carbon emission management. In addition, the company continues to implement value-sharing initiatives to promote the Group's ESG development in all aspects, such as "TCLGreen", exemplified by the TCL Photovoltaic Low-Carbon Campus project, and "TCLforHer", an initiative advocating for women's empowerment through technology and culture.

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