HONG Kong property developer New World Development Company on March 21 unveiled its green finance framework to guide the funding of sustainable building development and enhancements through green bonds and loans.

This is the first green finance framework in Hong Kong to include both green bonds and loans. The framework covers the group and its entities, including New World China Land and K11 Group. This initiative echoes the New World Sustainability Vision 2030, which aims for environmental protection, promotion of healthy living, technology adoption and caring for all community stakeholders.

In announcing the new framework, the group converted a previous five-year loan signed in March 2016 amounting to HK$3.6 billion (US$458.60 million) into a green facility following amendments in its documentation approved in March this year. The proceeds were earmarked for a green commercial re-development project at King’s Road in North Point, Hong Kong, which secured the world’s first WELL Building Standard Pre-certification (Platinum). This means the building is certified green, adhering to the framework.

New World Development executive vice-chairman and general manager Adrian Cheng says the King’s Road project will set the benchmark for future sustainable buildings. “We look forward to funding more impactful projects in Greater China through green bonds and loans,” he adds.

Guided by the framework, green bonds or loans would finance projects that meet the eligibility criteria set under green buildings, energy efficiency and renewable energy, water management, waste management and climate change adaptation.

New World is committed to transparently reporting the environmental impact of each transaction under its green finance framework, such as final assessment results of green and health building certifications and energy consumption reduction, among others.

Sustainalytics has confirmed the framework was aligned with the Green Bond Principles 2017 and contained robust criteria to guide future green loans. The loan has received a green finance certificate (pre-issuance) from the Hong Kong Quality Assurance Agency.

HSBC acted as the green finance adviser, as well as lenders in the transaction together with ANZ, Bank of China (Hong Kong), Credit Agricole CIB, Hang Seng Bank and Sumitomo Mitsui Trust Bank (Hong Kong).

Photo credit: http://www.nwd.com.hk/