Hongkong Land signs US$882 million sustainable loans
Property developer to receive discounts on loan interest rates for meeting ESG targets
16 Apr 2021 | The Asset

Hongkong Land has announced the signing of HK$6.85 billion (US$882 million) in sustainability-linked loans, building on its commitment to sustainable financing following its first sustainability-linked loan of HK$1 billion with DBS last year.  

Five sustainability-linked revolving credit facilities totalling HK$6.85 billion have been signed since November 2020.  Two four-year loan facilities with DBS (HK$1.5 billion) and MUFG (HK$900 million), and three five-year loan facilities with BOCHK (HK$2.7 billion), HSBC (HK$1 billion) and OCBC Bank (HK$750 million).

Hongkong Land will be eligible to receive a tiered discount on the interest rate of the loans for the respective bank if it achieves environmental, social and governance (ESG) targets, which include demonstrating continuous improvements in greenhouse gas emissions, electricity consumption, food waste, and solar energy generation, while maintaining green building certifications for Hongkong Land’s portfolio in the central business district of Hong Kong.

The proceeds of the loans will be used for general working capital and corporate funding purposes, and to further fund ongoing green building initiatives.

“These sustainability-linked loans further demonstrate the integration of sustainability in all aspects of our business, and our desire to continue to support the development of sustainable capital markets in the region,” says Robert Wong, Hongkong Land’s chief executive officer.