HONG KONG, Aug. 28, 2020 /PRNewswire/ — 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 initiatives.
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.
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 Greater 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.
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 11 consecutive years from 2009 to 2019.
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 S$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. The bank acknowledges the passion, commitment and can-do spirit in all our 29,000 staff, representing over 40 nationalities. For more information, please visit www.dbs.com.