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Standard Chartered signs US$2 billion sustainability-linked loan for TSMC
Loan margin incentives linked to chip foundry’s performance in reducing emissions and increasing use of renewable energy
18 Nov 2021 | The Asset

Standard Chartered has signed an agreement to provide Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) with a sustainability-linked loan worth US$2 billion. The facility is the bank’s largest commitment of its kind and is jointly extended by its branches in Taiwan, Hong Kong, and Singapore.

The bank will track the related sustainability performance of TSMC in the next two years, including the reduction of greenhouse gas emissions, air pollutant emissions and water pollution composite, as well as increasing the share of renewable energy in its operations. Standard Chartered will provide loan margin incentives if TSMC delivers positive improvement on these indicators, hence supporting the company’s efforts to bring positive changes to the environment.

Andrew Au, regional co-head of client coverage, corporate, commercial & institutional banking, Asia, at Standard Chartered, says: “As part of Standard Chartered’s roadmap in promoting sustainable finance, we are committed to supporting our clients to grow their businesses in a sustainable manner with our diverse products and services as well as cross-border resources. This sustainability-linked loan with TSMC marks a new milestone in developing sustainable finance as it is the largest commitment to sustainability-linked loan financing not only in Taiwan but also in Standard Chartered.”

TSMC is recognized as the world's top semiconductor foundry for its innovation and world-leading technology. Serving as an industry benchmark for sustainability, TSMC has been the only semiconductor company included in the Dow Jones Sustainability Indices for 21 consecutive years. It was also the only semiconductor company to receive the inaugural 2021 Terra Carta Seal award, launched by the Prince of Wales through The Sustainable Markets Initiative.

TSMC commits to reach net-zero emissions by 2050 and progressively sets goals of zero emissions growth by 2025 and reducing emissions to year 2020 levels by 2030. 

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