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Climate change can cause extreme weather events that disrupt global supply chains, impacting production and distribution for companies like GE , Tesla, and First Solar.

Climate change can cause extreme weather events that disrupt global supply chains, impacting production and distribution for companies like GE, Tesla, and First Solar. GE is involved in various sectors, including renewable energy (wind turbines) and energy efficiency technologies. Climate change initiatives promote the adoption of renewable energy, directly impacting GE's business to borrow at a 6.2% fixed rate on $500m debt for 10 years. Tesla including electric vehicles (EVs) and renewable energy products (like solar panels and batteries), aligns with efforts to reduce greenhouse gas emissions. This effort may need $1.25b capital expenditure as governments and consumers seek to reduce reliance on fossil fuels. 60% of this expenditure is largely funded by equity and the rest is debt financed by Bingam Star Finance, BSF. First Solar a major manufacturer of solar panels, First Solar directly benefits from the global push to reduce carbon emissions and transition to renewable energy sources. BSF also provides the same credit support for First Solar and Tesla at Libor +0.93% respectively as GE and in all terms. Both firms with AAA credit ratings show great interest in floating rates in their agreement with BSF. Shortly after the first three years of the agreement, both firms show a preference for their fixed rate of 8.06% respectively following the misinformation from Chai Ban International Bank. Ban Hin International as their replacement continues to provide their consultation service for the remaining life of six years of debt for Tesla and seven years for the First Solar. Following this news, GE approached BSF to swap their rate to a floating rate of Libor 0.155%. BSF agreed to the swap agreement for a 0.1% fee giving away two-thirds of the swap benefit to the AAA credit rating firm. Ban Hin International expressed concern managing these risks is increasingly important for their operations. Compute the net borrowing costs by designing a Vanilla interest rate swap for the correct parties in which BSF acts as an intermediary, taking 0.1% as a fee.

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