In April 2021, IXM Shanghai Corporate Management Company Ltd (”IXM”) signed China’s first ESG-linked LPR derivative agreement with core banking partner Hang Seng Bank (China) Limited, making IXM a pioneer in the field of responsible investment.
In addition to preventing and managing potential LPR rate market volatility, this transaction is also innovative in terms of product design: as long as IXM or its parent company CMOC meet the ESG requirements set out in the terms and conditions of the deal, IXM will enjoy a more favorable interest rate on the swap. As ESG performing company, IXM will not only be able to further reduce its financing costs, but also achieve sustainable, high-quality development.
IXM’s Treasury team is set to explore other ESG related structures with more banks in the future.
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