KMB closes an HK$800 million sustainability-linked loan facility with MUFG KPIs set to promote sustainable initiatives more effectively

The Kowloon Motor Bus Co. (1933) Ltd. (“KMB”) and MUFG Bank, Ltd. (“MUFG”) jointly announce that a 5-year HK$800 million sustainability-linked loan facility has been successfully closed, with key performance targets to promote projects related to sustainable development and environmental, social and governance (“ESG”).

This is the first KMB sustainability-linked loan facility after it signed the HK$500 million green loan last year. KMB has set out key environmental performance targets in relation to the reduction of greenhouse gas emissions of buses, increase in green procurement and average training hours for employees. KMB hopes the new facility and set-up of key environmental performance targets can help promote green transport in Hong Kong more effectively.

Mr Joseph Leung, Finance Director of KMB said, “KMB is devoted to promoting green transport in Hong Kong. We have already set a clear roadmap for upgrading the entire fleet to new energy buses to show our dedication to de-carbonisation and energy saving. This loan facility helps the implementation and application of clean energy as well as other sustainability-linked initiatives. KMB would like to express our gratitude to MUFG’s support and recognition. We will continue identifying suitable financing solutions and lead Hong Kong’s transportation industry into a new-green era.” 

Mr Tony Lee, MUFG’s Managing Director, Head of Global Corporate Banking, East Asia and Co-Head of Investment Banking, East Asia said, “MUFG is honoured to support KMB’s de-carbonisation scheme through this landmark sustainability-linked facility. This facility shows our unwavering support to our clients in sustainability plans and our commitment to bringing a positive impact to the environment. We strongly believe this facility can serve as a good benchmark for other transportation service providers in supporting their ESG plans.”

Photo caption