The challenge

Far Eastern New Century (FENC) has committed to the circular economy for over three decades by being part of the green supply chain and maintaining marine ecology. While green and sustainability-linked loans (SLLs) have gained popularity in Taiwan over the past few years, blue loans are less-commonly used, as they are largely only offered to companies dedicated to improving water treatment and ocean protection.

“Sustainability and innovation are already embedded in the Far Eastern New Century’s DNA,” FENC Chief Financial Officer David Wang explains.

The solution

In June 2022, FENC took up a blue loan of NT$1bn (equivalent US$33.65m) from DBS to support its sustainability goals of recycling more marine waste and implementing ocean protection projects. The loan is both the first blue loan in Taiwan and the first blue loan provided by DBS Group. The proceeds from the blue loan are certified and tracked exclusively for projects that support a blue economy.

“The blue loan would enable FENC to devote itself more to ocean-friendly and water resource protection initiatives, so that it can achieve the UN’s Sustainable Development Goals. As the market leader in sustainable finance in Taiwan, FENC is the only local company that has issued green bond, sustainability bond, social bond and sustainability-linked bond in Taiwan,” says Wang.

Best practice and innovation

DBS Taiwan introduced this innovative solution to Taiwan via FENC, which has become a benchmark leader in its industry. The loan has supported FENC play a critical role in bringing in more enterprises to contribute towards a more sustainable blue economy.

Through such funding, FENC can continue to focus on various sustainability goals and agendas. The blue loan enables FENC to focus more on ocean-friendly and water resource protection initiatives, so that it can deliver on its commitments to the UN’s Sustainable Development Goals.

Furthermore, the loan expands access to working capital. This has effectively helped FENC expand its financing channels to support working capital needs arising from more diversified blue projects.

Key benefits

• Number of banking partners/bank accounts diversified.

• Improved key performance indicator (KPI) metrics.

• Future-proof solution.

“This was an innovative financing tool that bridges the gap in funding for marine sustainability. It supports the blue economy and helps create greater awareness on the sustainable use of ocean resources. It also demonstrates that both corporates and banks are taking steps towards the optimisation of finite resources for economic growth, improved livelihoods, and jobs, while preserving the health of ocean ecosystems.”

Jenny Ho, Senior Vice President