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Giti Tire's Innovative Leap into Sustainability

Giti Tire, headquartered in Singapore, has marked a significant milestone by issuing S$150 million in sustainability notes, emphasizing its commitment to fostering environmental and social advancements. The notes, which have a maturity of five years, were arranged in partnership with DBS Bank, Deutsche Bank, and HSBC, demonstrating the confidence of financial institutions in Giti's mission to promote sustainable practices.

This funding initiative, priced at par with a 5.750% coupon rate, aims to finance or refinance projects directly linked to Giti's Sustainable Finance Framework. Moody's has issued a Second Party Opinion (SPO) on this framework, which supports Giti's pursuit of actionable and credible sustainability goals through its dedicated green projects. The framework is thoroughly detailed and can be accessed on Giti's official website.

At the core of Giti’s sustainable endeavors is its vision of continual growth that harmonizes business expansion and environmental stewardship. In its recently published 2024 Sustainability Report, Giti articulates its ambition to achieve net-zero emissions alongside maintaining financial viability. The company views “REAL profit”—profits considered through the lens of sustainability—as essential for striking a balance between profitability and ecological responsibility.

Collaboration and Innovation

Dr. Pang Chong Hau, Giti's Chief Sustainability Officer, emphasizes that achieving sustainable goals requires making thoughtful decisions concerning implementation costs. Giti is actively collaborating with various partners to innovate definitions of value within its operational framework, ensuring that the benefits of sustainable techniques can offset associated costs. This approach allows Giti to seamlessly integrate sustainability with its profit-oriented business model.

Alongside financial commitments, Giti Tire is engaging in groundbreaking projects that underline its dedication to eco-friendly practices. Recently, Giti participated in a cutting-edge collaboration with a leading electric vehicle manufacturer to develop the GitiSport e.GTR2 Pro tire. This collaboration aims to equip the world's fastest production vehicle, achieving astonishing speeds of 496.22 km/h while adhering to sustainability standards.

Notably, Giti’s commitment extends to supporting record-breaking endeavors, such as the attempt for the “Most Countries Visited in an Electric Vehicle.” The vehicle, which traversed over 80,000 km across 70 countries, employed GitiSynergy H2 tires, showcasing the tires' durability and longevity—qualities that are vital for minimizing waste and maximizing EV performance.

Investing in cutting-edge manufacturing processes, Giti’s newly established plant in Anhui is set to revolutionize sustainable production. This facility boasts advanced automation systems and 35,000 square meters of solar panel installations. It is designed to lower energy consumption by 20-30% annually, in addition to housing Giti’s first net-zero tire manufacturing lines, paving the way for a future of fully sustainable operations.

A Pledge Towards Sustainable Progress

Giti's tireless commitment to sustainability has not gone unnoticed, earning prestigious accolades such as the CDP Disclosure badge and the EcoVadis Platinum Award. Among its innovative developments is a concept tire made from 93% sustainably sourced and recycled materials, exemplifying Giti's dedication to a circular economy and innovation.

Dr. Enki Tan, Giti’s Executive Chairman, articulates that sustainability is not merely a regulatory obligation but a foundational responsibility embraced long before global standards emerged. The issuance of these Sustainability Notes serves as a pledge toward accountability and strategic intent, propelling projects aimed at emission reduction and community support.

In conclusion, Giti Tire stands firm as a beacon of investor confidence, perpetuating sustainable transformation within the automotive industry while nurturing an ambitious reputation as a global leader in environmentally conscious mobility. With tangible steps in sustainability, Giti is set to inspire both innovation and an ethical framework that the tire and automotive sectors can follow in the years to come.