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 if it achieves ESG targets agreed with the respective banks. These targets include demonstrating continuous improvements in greenhouse gas emissions, electricity consumption, food waste, and solar energy generation, whilst 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.
Mr Robert Wong, Chief Executive of Hongkong Land, said, “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.”
Mr Wang Bing, Deputy Chief Executive of BOCHK, said, “BOCHK is delighted to offer this sustainability-linked loan to Hongkong Land. Sustainability is a key initiative under the Bank’s core strategic goals. As environment, social and governance is integrated to the Bank’s policies, we encourage and support corporate customers to establish sustainable business models, by providing them with diversified sustainable financial services including deposits, loans, bonds, as well as acting as adviser.”
Mr Alex Cheung, Managing Director and Head of Institutional Banking Group at DBS Hong Kong, said, “As a purpose-driven bank, DBS remains committed to supporting our customers in accelerating their sustainability journey to generate long-term value for the community. We are proud to partner with Hongkong Land again in supporting their sustainability ambitions, as they continue on their journey to make positive social and environmental impact.”
Mr Jonathan Drew, Managing Director, ESG Solutions at HSBC, said, “It is encouraging to see Hongkong Land set out a diverse and ambitious set of targets tying its funding strategy to its sustainability commitments. Bold action from such a prestigious and well-known Hong Kong institution should encourage more organisations across the city to follow suit. Working with clients, we are proud to support Hong Kong’s transition to a low carbon economy by using the financial system to incentivise more sustainable business growth.”
Mr Tony Lee, Managing Director and Head of Global Corporate Banking, East Asia of MUFG Bank said, “MUFG is an active and leading market participant in ESG-linked financing and is committed to supporting our clients in making a difference. We are proud to be a close partner of Hongkong Land in its sustainability journey, contributing to the ongoing development of greener capital markets in the region.”
Mr Tan Wing Ming, Regional General Manager for North East Asia of OCBC Bank, said, “Over the last few years, sustainability has taken on a greater importance for many of our customers and sustainable finance has become a key part of their sustainability strategy. The commitment from our long-time customer Hongkong Land – which has multiple sustainable financing transactions under its belt – is proof of that. We are pleased to provide them with our support as we continue towards our goal of building a S$25 billion sustainable finance portfolio by 2025.”
DBS
DBS is a leading financial services group in Asia with a presence in 18 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank’s “AA-” and “Aa1” credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Euromoney, “Global Bank of the Year” by The Banker and “Best Bank in the World” by Global Finance. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 12 consecutive years from 2009 to 2020.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, and positively impacting communities through supporting social enterprises, as it banks the Asian way. It has also established a SGD 50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.
Hongkong Land
Hongkong Land is a major listed property investment, management and development group. The Group owns and manages more than 850,000 sq. m. of prime office and luxury retail property in key Asian cities, principally in Hong Kong, Singapore, Beijing and Jakarta. The Group also has a number of high quality residential, commercial, and mixed-use projects under development in cities across China and Southeast Asia. In Singapore, its subsidiary, MCL Land, is a well-established residential developer. Hongkong Land Holdings Limited is incorporated in Bermuda and has a standard listing on the London Stock Exchange, with secondary listings in Bermuda and Singapore. The Group’s assets and investments are managed from Hong Kong by Hongkong Land Limited. Hongkong Land is a member of the Jardine Matheson Group.
