26th September 2023 – FountainVest , an independent private equity firm focused in Asia, is pleased to announce today a significant milestone with the completion of a US$625 million Sustainability Linked Loan (SLL or Facility) for its FountainVest Capital Partners Fund IV, L.P. (“Fund IV”). This SLL marks another big step on the firm’s ESG journey and its continuous efforts to drive positive impact through sustainable investments. Standard Chartered acted as and the sole Sustainability Coordinator and an Original Lender of the Facility.
FountainVest became a signatory to UN Principles for Responsible Investment (“PRI”) in 2022. The SLL is part of FountainVest’s overall commitment to integrating the ESG assessment into its investment decisions and life cycle management. With its recently closed Fund IV, the SLL targets to drive the underlying investments with the following KPIs:
● Enhancing ESG risk assessment and integration in investment decision process
● Promoting Green House Gas emissions reporting and reduction at portfolio companies
● Promoting senior female leadership of portfolio companies
● Promoting ESG governance at portfolio companies
● ESG capacity building at FountainVest platform
The structure of this SLL aligns with the Sustainability Linked Loan Principles issued by LMA, APLMA and LTSA and follows the best market practice, including a Second Party Opinion by ISS and annual independent assurance of actual performance by a third party. The SLL was facilitated by a consortium of lenders –ANZ Group, DBS, Deutsche Bank, J.P. Morgan Chase, and Standard Chartered.
Amy Fong, Chair of ESG Committee and Managing Director of FountainVest said: “Sustainability has an increasingly important role in global investments industry. As an institutional investor, we believe that embracing and implementing ESG best practices is an important way to create value and achieve better, more sustainable returns for our investors. The Sustainability-linked Loan is another example of FountainVest’s constant efforts of promoting responsible investments and transparency through deal cycle and creating long-term value to our investors and the society”.
Tracy Wong Harris, Head of Sustainable Finance Asia at Standard Chartered, said: “We are very pleased to help FountainVest close its first Sustainable Financing transaction. Global investors are increasingly looking for opportunities to invest in enterprises and projects that align with their sustainability goals. Standard Chartered plans to mobilise US$300 billion in green and transition finance by 2030 to help clients achieve their sustainability aspirations. The transaction is another testimony of Standard Chartered Banks’ Sustainable Finance structuring capabilities with Private Equity clients and we are fully committed to partnering with our clients along their decarbonization journey”.
FountainVest Partners is an established, independent private equity firm. It focuses on long-term growth opportunities in industry leaders, partnering closely with management teams to unlock value and drive growth, at the same time seeking to make a positive impact in the communities in which it invests. FountainVest has a strong track record, having completed numerous landmark investments globally in multiple sectors including consumer, healthcare, industrials, and business services. FountainVest manages capital on behalf of the world’s leading public pensions, sovereign wealth funds, and other institutional investors.