Bank of China contributes to a ₩475 billion KRW sustainability-linked syndicated loan to SK Geo Centric for the Ulsan Recycling Center Project (Linked to Record ID#109101)

Project narrative

On November 15, 2022, a syndicate of five banks — including the Bank of China (BOC) and the Agricultural Bank of China (ABC) — entered into a ₩475 billion KRW ($363 million USD) sustainability-linked debt financing package with SK Geo Centric Co. (formerly SK Global Chemical) — a South Korea-based the manufacturer and distributor of petrochemical products for the SK Group — for the Ulsan Recycling Center Project. The loan carried a maturity period of three years and a variable interest rate based on a 90-day benchmark plus a 1.5% margin. Record ID#109100 captures BOC's contribution to the syndicate and RecordID#109101 captures ABC's contribution. In addition to BOC and ABC, BNP Paribas S.A., Crédit Agricole, and MUFG Bank, Ltd. also contributed to the syndicate. The proceeds of this loan will be used to construct the first plastic recycling centers in Ulsan, Korea by 2025, as well as other potential green projects. SK Geo Centric set at least two green targets related to the sustainable loans, which include reducing greenhouse gases by 24.9% by 2025 when compared to 2019, and increasing plastics recycling to 900,000 tons by 2025. Ground was broken on the Ulsan Advanced Recycling Cluster (ARC) on November 15, 2023.