Giti Tire Completes Issuance of S$150 Million 5-Year Sustainability Bonds

Giti Tire Completes Issuance of S$150 Million Sustainability Bonds

Giti Tire (Giti) has announced the successful issuance of sustainability bonds amounting to S$150 million, which were jointly arranged by DBS Bank Ltd, Deutsche Bank, and HSBC. These five-year Singapore dollar bonds, priced at par with a coupon of 5.750%, are directed at financing or refinancing expenditures that align with worthy green and social projects highlighted in Giti's Sustainable Finance Framework.

Moody's provided a second-party opinion (SPO) on the framework, which can be accessed on Giti's official website, reinforcing the company’s credibility in meeting environmental standards. The framework emphasizes a commitment to continual growth across all business aspects while emphasizing stewardship and upliftment. In its 2024 sustainability report, Giti introduces the concept of REAL profit, defined as earnings that take sustainability considerations into account, with the aim of achieving net-zero status and balancing climate objectives with financial discipline.

Dr. Pang Chong Hau, Giti's Chief Sustainability Officer, noted the importance of managing implementation costs while fostering partnerships to expand value definitions. Collaboratively, they strive to ensure that the advantages and savings produced through sustainable practices outweigh their implementation costs, thereby ensuring that sustainability and profitability proceed hand in hand.

Green Innovation in Motion

Giti's sustainability initiatives are not limited to financial measures. Throughout the year, the company undertakes various projects that resonate with its sustainability objectives. Recently, Giti partnered with a leading electric vehicle manufacturer to develop the GitiSport e.GTR2 Pro tire, designed for the fastest production vehicle in the world, reaching speeds of 496.22 km/h. This partnership is a testament to Giti's technological prowess in crafting ultra-high-performance tires for zero-emission vehicles.

Moreover, the electric vehicle, participating in a world record attempt titled "Most Countries Visited in an Electric Vehicle," is utilizing GitiSynergy H2 tires, showcasing an impressive mileage of over 80,000 km across 70 nations, highlighting the tires' durability and resilience. This feature is crucial for waste reduction and enhancing electric vehicle efficiency.

In addition, Giti's newly established factory in Anhui promotes sustainable production methods. Equipped with cutting-edge automation, the facility sports 35,000 square meters of solar panels on its roof, expected to cut energy costs by 20-30% annually. It houses Giti's first net-zero tire production line, paving the way for an entirely eco-friendly operation.

Giti’s leading sustainability efforts have been recognized through accolades such as the CDP Disclosure Badge and the EcoVadis Platinum Award. Significantly, the company has developed a concept tire that comprises 93% renewable and recycled materials, further showcasing its commitment to circular innovations.

Dr. Enki Tan, Executive Chairman of Giti, stated,