Shui On Land, a leading commercial property focused developer, owner and asset manager in China, on November 24 announced the reopening of its inaugural senior bond under its green finance framework for a tap of US$200 million, bringing the outstanding amount to US$500 million. The green bond has a coupon of 5.75% and matures in November 2023.
As a socially responsible property developer, Shui On Land firmly believes that sustainability is key to the long-term development of both the enterprise and society. In line with the philosophy and strategies of corporate social responsibilities, the company has developed the green finance framework as a basis for entering into future green financing and to ensure the long-term sustainable development of its business.
Sustainalytics, as an independent third party, was appointed to provide an opinion on the alignment of the framework with the International Capital Markets Association (ICMA) Green Bond Principles 2018. Under the green finance framework, Shui On Land launched its debut green bond in November 2019, raising an aggregate amount of US$300 million, all of which has been used to finance the acquisition of Corporate Avenue 5 in Taipingqiao, Shanghai, the renovation of Shui On Plaza in Shanghai, and the renovation of Shui On Land headquarters.
The company currently has a strong portfolio of green buildings that are eligible under the green finance framework, and proceeds from the tap offering of the green bond will be used exclusively for projects funded by Shui On Land that promote sustainable development in the real estate industry.
As of June 30 this year, Shui On Land had 1.62 million square metres of green certified commercial buildings under its portfolio, with projects having achieved various leading national and international green certifications such as Leadership in Energy & Environment Design (LEED), China Green Building, Building Research Establishment Environmental Assessment Method (BREEAM), and WELL Community Standard certifications.
The reopening transaction will further solidify the company’s commitment towards building dynamic communities that integrate the sustainable development philosophy of green and health into various stages of strategic planning, product development, and daily operation and management. The offering also aligns with Shui On Land’s latest 5C strategy, which comprises five key elements, namely, clean, culture, community, care and corporate governance, which was introduced at the end of 2019 to further extend the company's increasing commitment to sustainable development.
UBS acted as sole green adviser, global coordinator, bookrunner and lead manager in the tap offering.