Henderson Sunlight Asset Management Limited and DBS Hong Kong jointly announced that Sunlight Real Estate Investment Trust (Sunlight REIT) has secured a HK$500 million (US$64.50 million) sustainability-linked loan on February 2.
The sustainability-linked loan is unsecured and has a tenure of five years. DBS Hong Kong will offer interest margin privileges based on the satisfaction of pre-determined sustainability performance targets relating to environmental and social aspects. The proceeds of the loan will be used for general working capital.
Henderson Sunlight chief executive officer Wu Shiu Kee says Sunlight REIT has recently re-crafted its sustainability strategy framework, of which sustainability finance is ranked at the forefront of its priority list. “The socio-economic impact arising from the Covid-19 outbreak demonstrates the importance of addressing environmental, social and governance (ESG) factors,” he says. “As the manager of Sunlight REIT, we are delighted to partner with DBS Hong Kong on this financing arrangement, which would surely help to reinforce the sustainable position of Sunlight REIT for the benefit of its stakeholders.”
In extending the sustainability-linked loan, DBS Hong Kong managing director and head of institutional banking group Alex Cheung says the bank is committed to supporting its clients in advancing their business sustainability goals. DBS is a signatory to the United Nations Global Compact and is committed to driving progress towards the UN Sustainable Development Goals in ways that are meaningful to its businesses. This includes acting on climate change by partnering with corporates in adopting responsible financing practices. Since 2018, DBS has concluded over 100 sustainable financing deals amounting to about S$17.5 billion (US$13.16 billion).
Sunlight REIT is a real estate investment trust authorized by the Securities and Futures Commission, and offers investors the opportunity to invest in a diversified portfolio of 11 office and five retail properties in Hong Kong with a total gross rentable area of over 1.2 million sq ft.