SY Holdings launches new social, sustainable financing frameworks

By William Gullotti

Buffalo, N.Y., Aug. 23 – China’s SY Holdings Group Ltd. launched a new social financing framework and a new sustainability-linked financing framework on Aug. 22, according to an announcement on Tuesday.

Sustainalytics US Inc. and SusallWave Digital Technology (Shenzhen) Co., Ltd. have provided second party opinions to verify that the two frameworks align with their respective sets of relevant guidelines.

The company said it launched its social financing framework for the future issuance of social bonds, loans and other debt instruments. Proceeds raised under the social financing framework will be used toward small- and medium-sized enterprises lending. In addition to the specific use of proceeds, the social financing framework also requires the group evaluate and select eligible projects to support the sustainability of the supply chain ecosystem and society at large.

Under the sustainability-linked financing framework, SY Holdings said it seeks to integrate its sustainability performance targets with economic benefits as part of its sustainability strategy. The sustainability-linked framework has no restrictions on its use of proceeds as it is intended to improve the group’s sustainability performance.

Although specific goals and metrics were not disclosed in the announcement, the board of SY Holdings said it believes both financing frameworks will help the group to further integrate its business development within the practice of corporate social responsibility and sustainability.

SY Holdings provides receivable accounts financing, factoring financing, asset management, credit assessment, and other services to state-owned enterprises, listed companies and other groups.

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