Hang Lung Bolsters Sustainability Commitment with Inaugural Sustainability-Linked Loans Worth HK$1.5 Billion
HONG KONG, Dec. 9, 2020 /PRNewswire/ -- Hang Lung Properties has signed two sustainability-linked loan (SLL) facility agreements with Crédit Agricole Corporate and Investment Bank (Crédit Agricole CIB) and DBS Hong Kong (DBS) to the value of HK$1.5 billion, demonstrating its commitment to further its sustainability performance through sustainable financing.
Today's announcement marks an important milestone in the Company's sustainability journey and reaffirms its commitment to sustainable development in four priority areas over the next ten years -- Climate Resilience, Resource Management, Wellbeing, and Sustainable Transactions.
SLL incentivizes the borrower's achievement of predetermined sustainability performance objectives related to environment, social, and governance (ESG). While the loan proceeds can be used for general corporate funding purposes, Hang Lung aims to give priority to fund initiatives that drive its long-term sustainability performance.
The SLL agreement with Crédit Agricole CIB converts an existing five-year credit facility of HK$500 million, while the deal with DBS is for a new five-year SLL of HK$1 billion. Hang Lung will work towards the predetermined sustainability performance targets agreed with Crédit Agricole CIB and DBS respectively, which include retaining its listing on the Dow Jones Sustainability Asia Pacific Index (DJSI), and annual reduction in electricity intensity across parts of its portfolio.
Apart from the SLL initiatives, Hang Lung reinforces its sustainability leadership agenda through raising funds and financing environmental projects under its green finance framework launched in 2019. Under the framework, the Company has since issued green bonds worth HK$2 billion and arranged green loans to the value of HK$1.8 billion in 2020.
Over the years, Hang Lung's commitment to sustainability excellence has gained local and international recognition. Accolades include selection as a member of the DJSI Asia Pacific Index for three consecutive years since 2017, a 3-star performance and A-grade disclosure ratings under GRESB since 2018, and selection as a constituent of the Hang Seng Corporate Sustainability Index and Hang Seng (Mainland and Hong Kong) Corporate Sustainability Index with an AA rating.
About Hang Lung Properties
Hang Lung Properties Limited (stock code: 00101), a constituent stock of the Hang Seng Index, Hang Seng SCHK High Dividend Low Volatility Index, Hang Seng Low Volatility Index, Hang Seng Corporate Sustainability Index in Hong Kong, and a member of the Dow Jones Sustainability Asia Pacific Index, is a leading real estate developer operating in Hong Kong and Mainland China. Boasting a diversified portfolio of investment properties in Hong Kong, the Company has progressively branched out into the Mainland since the 1990s, with our distinctive footprint now fully established in Shanghai, Shenyang, Jinan, Wuxi, Tianjin, Dalian, Kunming, Wuhan, and Hangzhou, with all the Mainland projects carrying the "66" brand. As Hang Lung's business continues to grow, the Company is set to develop into a highly admired national commercial property developer in China.