Tag: Alibaba Group

In the first half of 2021, Citi has raised over US$25bn for Asia Pacific clients from global and local capital markets to support their sustainable financeng needs. Citi has been working on managing and reducing the direct environmental impacts of its operations by tracking energy use, greenhouse gas emissions, water use, waste, and green building initiatives. Citi has initiated this process in close to 100 markets where it is present.

“As a global, value-driven firm, Citi is supporting the transition to a low-carbon economy. We view sustainable financing both as a mandate and as an opportunity to partner with our clients across geographies — to help them decarbonize their operations and achieve their enterprise sustainability goals,” said Peter Babej, Citi Asia Pacific CEO.

The bank has raised finances from various clients. The first half include Alibaba Group’s US$5bn four-part offering in February, which included a 20-year sustainability tranche — its debut sustainable capital markets transaction. From the hardware sector, SK hynix issued a US$2.5bn bond in January with a 10-year green tranche. Citi likewise led a US$3bn sukuk for the Republic of Indonesia in June, which included a 30-year green tranche — the longest-ever green offering in Islamic format.

The capital raised for Asian clients is part of Citi’s overall global financing targets. In 2019, the bank met its $100 billion Environmental Finance goal four years early. In April 2021, the bank announced a US$500 billion environmental finance goal, as part of the US$1 trillion sustainable finance goal, all by 2030. As the partnership with clients evolves, the dialogue though is widening further away from just financing.

“The scope of our sustainable financing efforts is growing continuously, and covers all client segments – from investors repositioning their portfolios toward greener industries, to corporates realigning their business models through acquisitions and divestitures. Our institutional commitment to building a greener future cuts across all these activities,” added Babej.

Recently Citi has installed 360 solar panels at their main office in Hong Kong. The rooftop Installation also includes a wind turbine, which generates electricity on-site for local use.