PVTIME - Hongkong Land and DBS Bank (DBS) announced today that an agreement has been reached to convert an existing five-year revolving credit facility of HK$1 billion, dated February 2020, into a sustainability-linked loan, with the interest rate being indexed against ESG targets.
Hongkong Land will be eligible to receive a tiered discount on the
interest rate of the loan if it achieves pre-determined ESG targets
agreed with DBS. 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.
"This sustainability-linked loan is an important step forward in our
journey towards a more sustainable future and reflects both our strategy
of integrating sustainability in all aspects of our business, and our
desire to support the development of sustainable capital markets in the
region." said Mr Robert Wong, Chief Executive of Hongkong Land.
The proceeds of the loan will be used for general working capital and
corporate funding purposes, and to fund ongoing green building
Ms Tan Su Shan, Group Head,
Institutional Banking of DBS Bank said, "DBS is privileged to partner
with Hongkong Land as it progresses on its sustainability journey. As we
continue to pursue our own sustainability goals, we are delighted to
collaborate with like-minded partners who are accelerating towards more
carbon efficient operations, contributing a positive change and
generating long-term value for the community."
2019 marked a milestone year for Hongkong Land with its entire
Central Portfolio achieving the highest rating of Platinum under the
BEAM Plus certification scheme, whilst One, Two and Three Exchange
Square, and The Forum, won the Hong Kong Green Building Award's Grand
Award, underscoring Hongkong Land's commitment to sustainability.
DBS is a signatory to the United Nations Global Compact and is
committed to driving progress towards the United Nations Sustainable
Development Goals in ways that are meaningful for its businesses. This
includes acting on climate change by partnering with corporates in
adopting responsible financing practices. Since 2018, DBS has provided
sustainable financing amounting to about S$13 billion.