KLM opens new credit facility linked to ESG objectives
KLM has opened a new revolving credit facility (RCF) with a syndicate of 14 international banks. This relates to an amount of 1 billion for a term of four years, with an option to extend for a further two years. KLM is therefore closing the direct loan and credit facility guaranteed by the Dutch government as of the same date.
Amstelveen – WEBWIRE – Friday, April 21, 2023
Its encouraging news that we can stand on our own feet again after such a difficult period.
The coronavirus crisis had an unprecedented impact on the airline industry. The Dutch government provided an exceptional helping hand in the form of a direct loan of 1 billion and a 90% guarantee on a 2.4 billion bank credit facility.
In 2020, KLM withdrew 942 million of the available 3.4 billion. This amount could be repaid in full as early as in June 2022 thanks to rapidly recovering passenger demand.
KLM announced that it has closed the remaining direct loan and credit facility, guaranteed up to 90% by the Dutch government. This means that the conditions governing the financial support package no longer apply. KLM reiterates that achieving greater sustainability, while remaining healthy and competitive still serve as key objectives.
KLM has opened a 1 billion revolving credit facility with a syndicate of banks to replace the financial support package. The credit facility is linked to ESG objectives regarding sustainability and social responsibility. ABN AMRO, ING and Rabobank coordinated the group of banks and Crdit Agricole did so for the sustainability targets. Once the ESG targets have been met, the interest margin will be reduced.
Its encouraging news that we can stand on our own feet again after such a difficult period. This is also due to the efforts of all KLM employees and the loyalty of our customers. We are grateful to the Dutch government for its support during the coronavirus crisis. Our focus remains on meeting our sustainability targets and staying financially healthy through achieving structural cost savings. This will not change and it is the only way for us to continue connecting our customers who want to travel the world.
KLM CEO Marjan Rintel
Its fantastic that three years on from the outbreak of the coronavirus pandemic, we can conclude the state support package. Were able to take this step thanks to KLMs strong cash position and the good prospects facing the airline industry. Im pleased the banks involved share the confidence we have in KLMs future. In so doing, we are now leaving the coronavirus crisis behind us. The enormous degree of support received from both government and the banks has been essential for KLM over this period.
KLM CFO Erik Swelheim
AEON Credit Service (Asia) Company Limited (“AEON Credit” or the “Group”; Stock Code: 00900) today announced its results for the year ended 28th February 2023 (“FY2022” or the “Reporting Year”). In FY2022, the Group’s revenue increased by 17.3% year-on-year to HK$1,231.6 million, and operating profit rose by 25.8% to HK$556.7 million. Meanwhile, profit after tax recorded a 9.1% increase to HK$373.6 million during the Reporting Year, with earnings per share rising to 89.22 HK cents (FY2021: 81.81 HK cents). The Board has recommended a final dividend of 22.0 HK cents per share, bringing the total dividend for the Reporting Year to 44.0 HK cents per share, representing a dividend payout ratio of 49.3%. The solid increase in revenue in FY2022 was mainly attributable to the launch of the Group’s first ever cashback credit card, AEON Card Wakuwaku (the “Wakuwaku Card”), supported by successful mass promotion and brand building activities, which resulted in a significant increase in both credit card and personal loan sales, and thus interest income. The Group achieved an overall sales growth of 32.7% year-on-year, with the total advances and receivables balance at 28th February 2023 recording an increase of 36.5% when compared with the balance at 28th February 2022. The fees and commissions from the credit card business also achieved significant growth, up 38.8% due to the increase in credit card sales and the ‘off-us’ acquiring service for AEON Stores, which contributed to the rise in revenue as well. The Group implemented a number of initiatives in a timely manner to achieve healthy growth in both sales and receivables and to maintain a quality portfolio during the Reporting Year, as consumer spending rebounded remarkably in Hong Kong in the second half year following the launch of a range of economic stimulus measures and the progressive resumption of overseas travel. In addition to the launch of several mass promotion activities, the Group engaged celebrities to promote personal loans and its “Wakuwaku Card” in a bid to attract a greater number of customers who predominantly shop online and are generally more knowledgeable about spending rewards and incentives. Separately, for fee business, the Group has significantly increased the scale of its card acquiring business and continued to take on new merchants with relatively sizable transaction volumes and/or with multi-distribution networks. Moreover, the Group entered into a new distribution partnership agreement in the second quarter to expand its offline and online insurance sales channels, allowing the Company’s customers to access and purchase a wide range of insurance products more conveniently. To accelerate its digital transformation, the Group’s new card and loan system project, net-member and mobile application systems, and data lake project were successfully launched in early March 2023, facilitating new payment solutions and the flexibility in offering product benefits, as well as easy access to even better data analytics tools and services. On the sustainability front, the Group secured a sustainability-linked loan framework and entered into agreements for sustainability-linked loans (the “Loans”) in the third quarter, with a total carrying amount of HK$320 million and each for a term of three years. The Loans form part of the Group’s first sustainable financing initiative, and demonstrate the Group’s commitment to sustainability by linking the interest margins of the Loans to the Group’s environmental, social and governance (“ESG”) key performance indicators. Looking ahead, with the regulatory changes in the interest rate cap and the threshold of extortionate rate under the Money Lenders Ordinance, the Group is presented with opportunities to leverage its strong capital base to pursue business expansion and to acquire asset portfolios from competitors in the coming year. In response to the evolving consumer finance behaviour in the wake of the Pandemic, the Group will continue to offer enhanced digital experiences and create more “value” for online purchases by offering cash rebates. It will also revamp its branch network to meet the needs of customers who seek face-to-face advisory services. Following the completion of upgrades to the card and loan systems and the launch of new mobile applications and a net-member platform; new services and rewards, including mobile wallets and virtual card solutions, will be continuously offered in the coming year to manage market changes and new customer needs. As both the US Federal Funds Rate and the Hong Kong Prime Rate are expected to remain high in 2023/24, the Group will expand its other sources of revenue, namely fee income, to help mitigate the impact on net interest income from a declining interest spread. For the card acquiring business, the Group will upgrade its acquiring system platform and work with other payment solution providers to extend the merchant network and to add in new services. Regarding the insurance agency business, the Group will expand its direct sales team and explore new insurance products to meet the needs of its customers. In terms of technology development, with the completion of the card and loan system replacement project, the Group can promote new product benefits by enhancing digital marketing and providing premium user experiences or new payment solutions to its customers. Moreover, the effectiveness of the Group’s marketing, credit assessment and credit management activities are expected to improve with the support of data analytics tools. Mr. Tomoharu Fukayama, Managing Director of AEON Credit, said, “The Group is pleased to have achieved robust growth over the past year through the implementation of timely initiatives that have capitalised on the improving market sentiment. While it is difficult to predict the time frame for a full economic recovery, with the Group’s responsiveness and strong business relations with its partners, as well as its solid liquidity position and balance sheet, we remain confident in our future growth prospects and look forward to performing satisfactorily in the coming year.” About AEON Credit Service (Asia) Company Limited (Stock Code: 00900) For more information, please visit the company’s website at www.aeon.com.hk. AEON Credit Service (Asia) Company Limited (“AEON Credit” or the “Group”; Stock Code: 00900) today announced its results for the nine months ended 30 November 2022 (the “reporting period” or “nine months of FY2022/23”) During the reporting period, the Group’s revenue rose by 15.2% to HK$887.4 million and operating profit recorded a 17.0% increase to HK$380.7 million. Meanwhile, profit after tax was up by 2.9% to HK$250.3 million, with earnings per share increasing to 59.77 HK cents for the reporting period (nine months of FY2021/22: 58.09 HK cents). Both overseas and local consumer spending showed a progressive recovery in the three months ended 30 November 2022 (the “third quarter”). The improved market sentiment, along with the Group’s efforts to capture business opportunities, resulted in a notable growth in sales, which recorded an overall increase of 28.3% when compared with the nine months ended 30 November 2021 (the “previous period” or “nine months of FY2021/22”). The overall increase in sales and revolving credit card and personal loan balances drove a solid increase in interest income, and thus growth in revenue. With the launch of the acquiring service for AEON Stores in August 2021, the Group recorded an overall increase in fees and commissions of HK$25 million in the reporting period to HK$94.9 million, which also added impetus to revenue growth. Among the measures to advance business development during the reporting period, the Group launched the “Japan Travel Spending Promotion” to capitalize on the increasing overseas spending. Moreover, the Group increased its exposure in different media channels to promote its branding and products and equipped its branches with the resources needed to provide financial advisory services. Regarding the insurance intermediary business, the Group launched a new distribution partnership with Chubb Life Insurance Company Limited (“Chubb Life Hong Kong”) to expand its offline and online insurance sales channels in the third quarter, allowing its customers to access and purchase a wide range of insurance products more conveniently. In terms of information technology development, the Group continued to press ahead with its new card and loan system project and the replacement of its netmember and mobile application solutions to ensure that the new systems can be launched as anticipated. Regarding sustainable development, the Group has established a sustainability-linked loan framework and entered into agreements for sustainability-linked loans (the “Loans”). The Loans are the Group’s first sustainable financing initiative, and strengthen its commitment to endorsing and developing in the sustainability arena by linking the interest margin of the Loans to the improvement of the Group’s environment, social and governance key performance indicators. Going forward, as international travel resumes, flight capacity is expected to gradually recover and social distancing measures will be further relaxed in the fourth quarter of the year ended 28 February 2023 (the “fourth quarter”), resulting in more sales opportunities and driving receivables growth. The Group will launch various mass promotion activities in the fourth quarter to stimulate sales growth during festival seasons and meet customers’ needs during the tax season. Moreover, the Group will leverage the new partnership with Chubb Life Hong Kong to generate synergistic benefits and increase the agency fee income through different insurance distribution channels. Mr. Tomoharu Fukayama, Managing Director of AEON Credit, said, “With our dedicated efforts in promotion and catering to customers’ needs, we are pleased to have achieved favourable results in the first nine months of FY2022/23. Looking ahead, we will continue to capitalize on the reviving market by launching mass promotion activities, leveraging our partnership in the insurance business, and exploring new business opportunities to diversify our revenue stream, with an aim to deliver long-term sustainable growth to our shareholders.” About AEON Credit Service (Asia) Company Limited (Stock Code: 00900) For more information, please visit the company’s website at www.aeon.com.hk. AEON Credit Service (Asia) Company Limited (“AEON Credit” or the “Group”; Stock Code: 00900) today announced that it has secured its sustainability-linked loan framework and entered agreements for three sustainability-linked loans (the “Loans”), with Mizuho Bank, Ltd., Hong Kong Branch, MUFG Bank, Ltd., Japanese Corporate Banking Division (Hong Kong) and Sumitomo Mitsui Banking Corporation, Hong Kong Branch, (the “Lenders”), with a total carrying amount of HK$320 million and a term of three years. The Loans are the Group’s first sustainable financing initiative and strengthens its commitment to endorsing and developing in the sustainability arena. Sustainability performance metrics have been set in accordance with AEON Credit’s existing Sustainability Development Policy, and will be assessed on an annual basis by the external reviewer, the Hong Kong Quality Assurance Agency. As mutually agreed with the Lenders, the Group will be entitled to receive interest rate savings for the Loans as an incentive for the achievement of the predetermined sustainability-linked targets. Mr. Tomoharu Fukayama, Managing Director of AEON Credit, said, “We are delighted to have arranged the Group’s sustainability-linked loan framework for bank financing, which emphasizes our long-term commitment to the advancement of sustainable development. As the basis for AEON Credit’s vision, mission and core values, we are well aware that responsible corporate practices are integral to assuring the betterment of the environment and society, as well as to creating additional long-term value for our shareholders and business partners. “Through integrating sustainability-linked targets into the assessment of the Group’s business and financial performance, we aim to reinforce the incorporation of sustainability practices into our operations so as to positively impact and contribute to the transformation of a greener and more sustainable capital market. Looking ahead, we will continue to proactively seek further opportunities to expand our sustainable financing portfolio and look forward to taking our stakeholders along on our sustainability journey.” About AEON Credit Service (Asia) Company Limited (Stock Code: 00900) For more information, please visit the company’s website at www.aeon.com.hk.
AEON Credit Service (Asia) Limited (“AEON Credit Service” or the “Group”; stock code: 00900) launched its brand-new AEON CARD WAKUWAKU on 1 May 2022, marking the introduction of the Group’s first CashBack credit card geared towards fans of online shopping, as part of its efforts to expand its customer base and capitalise on the growing trend of digital transactions and online shopping. The Group has also signed popular Hong Kong singer Jace Chan to act as an endorser of the newly launched credit card. The AEON CARD WAKUWAKU, debuted as the Group’s hero product this year, targets online shopping fans and the younger generation with an array of attractive rewards and offers. Boasting simple CashBack functionality, a colourful physical appearance complemented by a fun and original character mascot “MUK MUK LUK”, the brand-new credit card has been designed to gear towards younger customers in alignment with the Group’s plans to broaden its market reach to new target groups. The Group has also engaged Jace Chan as an endorser of the AEON CARD WAKUWAKU for her youthful and vibrant image and her love of online shopping, which closely echoes with the credit card’s function design and is expected to raise awareness of the product within the younger population. In order to stimulate spending and optimise the customer experience, AEON CARD WAKUWAKU offers a simple cash rebate system for online spending and food delivery both locally and overseas all year round. To encourage customers to get familiar with its digital systems, those who successfully apply for the AEON CARD WAKUWAKU through the “AEON HK” mobile app, which has been upgraded with greater convenience and efficiency in its credit card application function, can enjoy extra cash rebates. In addition, AEON Credit Service will also roll out the “Everywhere Spending Rewards Promotion” offer from 4 May to 10 August 2022, and the “Happy Summer Rewards” programme in collaboration with Tuen Mun Town Plaza from 5 May to 5 July 2022 to further capture the positive consumer sentiment boosted by the second round of the Consumption Voucher Scheme in Hong Kong. The Group has been making greater efforts on diversifying marketing channels and programmes so as to stay competitive and capitalise on the rebound of economic activities. Alongside the surge in e-commerce stores and online payment systems, the pandemic has provided a further boost to the growing trends of online shopping and cashless transactions, in particular within the younger generation. With the launch of the new AEON CARD WAKUWAKU, together with the signing of Jace Chan as an endorser, the Group is expected to be well positioned to capture the market opportunities arising from the changes in consumer behaviour and expand its brand presence among the younger population. Going forward, the Group will continue to refine its business model to adapt and meet evolving customer needs amid the new normal. About AEON Credit Service (Asia) Company Limited (HKEX: 00900) For more information, please visit the company’s website at www.aeon.com.hk. Media Inquiries
AEON Credit Revenue Up 17.3% to HK$1,231.6 Million in FY2022, Sales Jump 32.7% and Receivables Surpass Pre-Pandemic Level Reaching Record High
AEON Credit Service (Asia) Company Limited, a subsidiary of AEON Financial Service Co., Ltd. (TSE: 8570) and a member of the AEON Group, was set up in 1987 and listed on the Main Board of The Stock Exchange of Hong Kong Limited in 1995. The Group is principally engaged in the consumer finance business, which includes the issuance of credit cards and the provision of personal loan financing, card payment processing services, insurance agency and brokerage business in Hong Kong and microfinance business in Mainland China.
Topic: Press release summaryAEON Credit Revenue of First Nine Months of FY2022/23 Up by 15.2% to HK$887.4 million following Improved Market Sentiment and Successful Mass Promotion Activities
AEON Credit Service (Asia) Company Limited, a subsidiary of AEON Financial Service Co., Ltd. (TSE: 8570) and a member of the AEON Group, was set up in 1987 and listed on the Main Board of The Stock Exchange of Hong Kong Limited in 1995. The Group is principally engaged in the consumer finance business, which includes the issuance of credit cards and the provision of personal loan financing, card payment processing services, insurance agency and brokerage business in Hong Kong and microfinance business in Mainland China.
Topic: Press release summaryAEON Credit Secures its Framework for Sustainability-Linked Loans, Strengthens and Advances its Sustainability Pledge
AEON Credit Service (Asia) Company Limited, a subsidiary of AEON Financial Service Co., Ltd. (TSE: 8570) and a member of the AEON Group, was set up in 1987 and listed on the Main Board of The Stock Exchange of Hong Kong Limited in 1995. The Group is principally engaged in the consumer finance business, which includes the issuance of credit cards and the provision of personal loan financing, card payment processing services, insurance agency and brokerage business in Hong Kong and microfinance business in Mainland China.
Topic: Press release summary
AEON Credit Service Launches AEON CARD WAKUWAKU at the Forefront in Addressing Consumer Spending Habits Amid New Normal
AEON Credit Service launches brand-new and first CashBack credit card AEON CARD WAKU WAKU
AEON Credit Service (Asia) Company Limited, a subsidiary of AEON Financial Service Co., Ltd. (TSE: 8570) and a member of the AEON Group, was set up in 1987 and listed on the Main Board of The Stock Exchange of Hong Kong Limited in 1995. The Group is principally engaged in the consumer finance business, which includes the issuance of credit cards and the provision of personal loan financing, card payment processing services, insurance agency and brokerage business in Hong Kong and microfinance business in Mainland China.
Strategic Financial Relations Limited
Vicky LEE / Brigid LEE / Albert CHU
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E-mail: sprg_acsa@sprg.com.hk
Topic: Press release summary
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