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2021/11
Taiwan Crédit Agricole CIB Supports CTCI Group/ CTCI MAC with World’s First Sustainability-linked Green Guarantee Facility
TAIPEI, November 9, 2021- Crédit Agricole CIB, a major French corporate and investment bank, has announced its support of a 2-year TWD 800 million green guarantee facility out of USD 125 million medium term guarantee facilities to CTCI Group/ CTCI Machinery Corporation (CTCI MAC) for Zhongneng Offshore Wind Farm pin pile project. This is the world’s first sustainability-linked green guarantee facility, and an example of CTCI Group’s commitment to global sustainability.
The facility supports CTCI MAC’s local manufacturing activities of anchor components of foundation jackets for offshore wind turbines. Under the agreement, CTCI MAC will commit to carry out works according to ISO 14001: 2015 requirements and pass all audits. Moreover, the company needs to provide disclosures on expected environmental benefits and greenhouse gas emissions reduction. By speeding up green development and de-carbonization process through CTCI’s core competency, this will be a win-win for the economy and environment.
CTCI MAC is responsible for fabrication of nearly 100 pin piles to be used at Zhong Neng Offshore Windfarm, a windfarm located offshore of Changhua County in Taiwan and with high localization requirement.
Yun-Peng Tan, Chairman of CTCI MAC, said, “CTCI MAC has been actively engaged in offshore wind power business in line with the energy diversification policy of Taiwanese government and has been contracted with equipment manufacturing works for Taiwan’s Yunlin, Changfang & Xidao, and Zhong Neng offshore wind farms projects with proven success. We will continue on offering our technological and project management expertise to help realize localization goal for Taiwan’s wind farm projects, hence accelerating carbon neutralization target with clean energy development.”
Benjamin Lamberg, Chief Executive Officer of Crédit Agricole CIB Taipei Branch, commented, “Aside from supporting energy transition in Taiwan by project financing offshore windfarm projects, Crédit Agricole CIB further demonstrates its strong commitment to support the localization of the offshore wind supply chain in Taiwan. The innovative structure has not only connected conventional trade finance product with green use of proceeds but offered CTCI Group an opportunity to express their ambitions to uphold sustainable practices in the manufacturing process or the wider supply chain TAIPEI, November 9, 2021- Crédit Agricole CIB, a major French corporate and investment bank, has announced its support of a 2-year TWD 800 million green guarantee facility out of USD 125 million medium term guarantee facilities to CTCI Group/ CTCI Machinery Corporation (CTCI MAC) for Zhongneng Offshore Wind Farm pin pile project. This is the world’s first sustainability-linked green guarantee facility, and an example of CTCI Group’s commitment to global sustainability.
The facility supports CTCI MAC’s local manufacturing activities of anchor components of foundation jackets for offshore wind turbines. Under the agreement, CTCI MAC will commit to carry out works according to ISO 14001: 2015 requirements and pass all audits. Moreover, the company needs to provide disclosures on expected environmental benefits and greenhouse gas emissions reduction. By speeding up green development and de-carbonization process through CTCI’s core competency, this will be a win-win for the economy and environment.
CTCI MAC is responsible for fabrication of nearly 100 pin piles to be used at Zhong Neng Offshore Windfarm, a windfarm located offshore of Changhua County in Taiwan and with high localization requirement.
Yun-Peng Tan, Chairman of CTCI MAC, said, “CTCI MAC has been actively engaged in offshore wind power business in line with the energy diversification policy of Taiwanese government and has been contracted with equipment manufacturing works for Taiwan’s Yunlin, Changfang & Xidao, and Zhong Neng offshore wind farms projects with proven success. We will continue on offering our technological and project management expertise to help realize localization goal for Taiwan’s wind farm projects, hence accelerating carbon neutralization target with clean energy development.”
Benjamin Lamberg, Chief Executive Officer of Crédit Agricole CIB Taipei Branch, commented, “Aside from supporting energy transition in Taiwan by project financing offshore windfarm projects, Crédit Agricole CIB further demonstrates its strthrough sustainability-linked mechanism. By implementing this first of kind sustainability-linked green guarantee, it has undoubtedly paved the way for future development of sustainable finance.”
Carmen Tsang, Head of Sustainable Banking for Greater China, added, “Trade finance is a core element of the global economy and growing to be a trillion-dollar market by the end of this decade. ESG integration into this market is relatively novel, but a crucial trend to promote sustainability in global trade and supply chains. This is a market not to be ignored in mobilizing corporates and capital to support the journey towards a 1.5oC future. Crédit Agricole CIB is pleased to support CTCI Group in this innovative sustainability-linked green guarantee, of which supports the financing of renewable energy development locally in Taiwan. We hope that this would be a precedent to inspire more corporates to consider aligning their sustainability vision and efforts to their trade financing activities.”
As part of its strategy in global business decisions, CTCI has been keenly aware of the correlation between engineering projects and climate change. The group has followed Task Force on Climate-related Disclosures’ recommendations to identify risks and opportunities, as well as increase the share of green projects among its revenues. In 2020, green and low-carbon projects have accounted for 84% of total contract value, or TWD 109 billion. As of August 2021, green and low-carbon backlogs have increased 355% against year 2015. Not only has green projects become a vital driver for CTCI’s business, it also shows the group’s determination to become a green trailblazer. Looking forward to the future, CTCI Group will continue its deep commitment to provide the world with quality and environmentally-friendly engineering services by implementing its sustainable vision of "Guarding the Earth with Constant Innovation in Green Engineering."
