Champion REIT Secures First Sustainability-Linked Loan | 繁體

Hong Kong.08 Jun 2021.3 min read

Driving ESG performance in alignment with 2030 targets

Hong Kong, 08 Jun 2021 - Champion Real Estate Investment Trust (“Champion REIT” or “Trust”) (Stock Code: 2778), owner of Three Garden Road and Langham Place, has signed its first five-year HK$3.0 billion unsecured sustainability-linked term and revolving credit facilities. The loan proceeds will be used for refinancing and general corporate funding purposes. The loan is backed by:

  • DBS Bank Ltd. (as Sustainability Advisor)
  • Bank of China (Hong Kong) Limited
  • Industrial and Commercial Bank of China (Asia) Limited
  • Hang Seng Bank Limited
  • The Bank of East Asia, Limited
  • Oversea-Chinese Banking Corporation Limited
  • Citigroup Global Markets Asia Limited
  • United Overseas Bank Limited

Based on the facilities agreement, Champion REIT will receive a discount on the loan’s interest rate once the Trust has achieved the pre-determined sustainability-linked performance targets. The sustainability-linked performance targets are based on the aspects of Environmental, Social and Governance (“ESG”):

  • Champion REIT achieves reduction of carbon intensity;
  • Champion REIT attains WELL Building Standard; and
  • Champion REIT retains its listing on the Hang Seng Corporate Sustainability Benchmark index.

The targets are aligned with the Trust’s 2030 ESG plan, established in 2019, which set the reduction of carbon intensity by 42% as one of the key performance indicators. With the financial incentive, this partnership will reinforce the Trust’s commitment to embracing sustainability in every facet of its operations.

Over the years, Champion REIT's commitment to sustainability excellence has gained local and international recognition. This includes the WELL Core Certification at Platinum level under the WELL Building Standard by the International WELL Building InstituteTM being awarded to Three Garden Road, making it the first existing building in Hong Kong to score at the highest level of WELL certification. Moreover, the Trust was chosen as a constituent of the Hang Seng Corporate Sustainability Benchmark Index for the fifth consecutive year and was included in the Hang Seng ESG 50 Index in 2020.

Ms. Ada Wong, Chief Executive Officer of Champion REIT, said, “Today’s announcement marks an important milestone in our sustainability journey and reinforces our commitment to driving ESG’s performance over the past several years. This partnership demonstrates well how we have achieved financial value and business benefits by embracing sustainability. In the future, we will continue to explore other possibilities in sustainable financing to drive the Trust strategy forward and bring positive change to society. We are glad to have our relationship banks to support us along this journey and we look forward to building our partnerships together.”

Mr Alex Cheung, Managing Director and Head of Institutional Banking Group of DBS Hong Kong, said, “DBS is delighted to partner with Champion REIT as they forge ahead on their sustainability journey. This also marks an important milestone for the bank as we continue to introduce sustainability-linked loan facilities, signifying our commitment in reducing carbon emissions and bringing a positive change for our environment and customers.”

 
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About 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.

 

About Champion REIT (Stock Code: 2778)

Champion Real Estate Investment Trust is a trust formed to own and invest in income producing office and retail properties. The Trust focuses on Grade-A commercial properties in prime locations. It currently offers investors direct exposure to nearly 3 million sq. ft. of prime office and retail floor area. These included two Hong Kong landmark properties, Three Garden Road and Langham Place, as well as joint venture stake in 66 Shoe Lane in Central London. Since 2015, the Trust has been included in the Constituent of Hang Seng Corporate Sustainability Benchmark Index of Hang Seng Indexes.

Website: www.championreit.com  

Sustainability