Qisda : Signs NTD12 Billion Syndicated Loan Agreement Linking ESG Indicators for Sustainable Development

News Release

2023-08-15

Qisda Corporation Signs NTD12 Billion Syndicated Loan Agreement Linking ESG Indicators for Sustainable Development

Qisda Corporation has successfully concluded the signing of a NTD12 billion syndicated loan agreement today (15th), organized in collaboration with Bank of Taiwan and First Commercial Bank. The signing event was overseen by Qisda's Chairman, Peter Chen, alongside Bank of Taiwan's Chairman, Joseph Lyu, and First Commercial Bank's CEO, Chia-hsiang Lee. This event underscores Qisda's commitment to ESG sustainability indicators through its syndicated loan initiative, revitalizing its efforts towards sustainable development. Notably, the subscription demand for this initiative oversubscribed by 221.5%, reaching a total of NTD12 billion. This outcome reflects the financial community's substantial acknowledgment and endorsement of Qisda's strategic shift towards value transformation and sustainable growth.

Qisda's Chairman, Peter Chen, stated that Qisda aims to achieve a vision where over half of its profits come from high value-added businesses by the year 2027. Building upon the foundation of its vision, Qisda continues to strive for higher gross margins and profitability, aspiring to become the strongest economic cornerstone for sustainable development. Qisda also places equal emphasis on five aspects: green products, green operations, green supply chain, social inclusivity, and corporate governance, all contributing to its pursuit of sustainable business practices.

In this syndicated loan arrangement, Qisda's sustainability indicators are incorporated as loan conditions. Throughout the credit period, the managing banks will link sustainability metrics, including waste recycling rates, corporate sustainability assessments, and completion rates of audits for key suppliers in the green supply chain. These sustainability-linked indicators will be used to assess achievements and provide corresponding interest rate reductions, demonstrating concrete actions to support Qisda's sustainable growth.

The funds from this syndicated loan are intended to enhance working capital and repay existing bank borrowings. The managing banks for this loan are Bank of Taiwan and First Commercial Bank. Originally projected to raise NTD10 billion, however, with active participation from 14 financial institutions, the oversubscription reached 221.5%. The committed amount reached NTD22.15 billion, and the final amount settled at NTD12 billion, clearly demonstrating the financial community's strong recognition of Qisda's business transformation results and operational performance.

Qisda has been diligently cultivating its commitment to sustainability. Since releasing its first Corporate Social Responsibility (CSR) report in 2007, it has gained recognition from various sectors. In 2023, it achieved the prestigious title of HR Asia's Best Companies to Work for in Asia for five consecutive years. Additionally, it has secured two Asia Responsible Enterprise Awards and multiple Taiwan Sustainability Action Awards. Qisda is also actively extending its sustainability endeavors to its grand fleet members. In the first half of the year, six companies within its grand fleet collectively received recognition through 13 sustainability awards.