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Chailease-linked entities continue loan-borrowing spree with sustainability focus

Taiwan-listed financial-services provider Chailease Holdings Co Ltd and its subsidiaries/affiliates have continued their syndicated-loan-borrowing spree so far this year with a sustainability focus.

These entities have completed a total of USD 930m-equivalent syndicated loans from five deals so far this year, up 82% from the USD 511m closed from three deals during this time last year. However, the 2022 YTD volume is still 73.9% lower than the record annual high of USD 3.57bn across 15 deals registered in the entire 2021.

Deals closed YTD were mostly sustainability-linked loans (SLL), including Chailease Holdings’ USD 250m three-year facility completed early May and two deals for Chailease Finance Co Ltd: a TWD 5.2bn (USD 183m) three-year loan completed in March and a TWD 6.036bn (USD 217m) seven-year loan closed in February.

Chailease Finance is currently in the market for its third loan this year — a TWD 6bn (USD 202m) three-year SLL — while its wholly owned subsidiary Vietnam-based Chailease International Leasing Co Ltd is seeking an up to USD 100m three-year social loan. The deal, if it gets across the line, would be the first-ever syndicated social loan for a Southeast Asian company.

Chailease closed its first-ever syndicated-SLL in December last year with a USD 162m three-year loan via its unit Chailease International Financial Services (Singapore) Pte Ltd. In November, the company through five SPVs raised its first green loan, a TWD 15.6bn (USD 561m) deal, to fund its development of solar-power projects in the southern city of Tainan, Taiwan.

Chailease Holding provides financial services to SMEs, including leasing, installment sales, factoring and direct financing. It has operations in Taiwan, mainland China, Thailand, Vietnam, Malaysia, Cambodia, the Philippines and the United States.