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Green Financing

We are committed to integrating sustainability considerations into our financing mechanisms. By obtaining green financing through green bonds and sustainability-linked loans, we not only support the transition to a low-carbon, more resource efficient and sustainable economy, we also reaffirm our commitment to SD, and to designing and developing sustainable projects that improve the wellbeing of building occupants and local communities.

Green Financing

Green Bond Proceeds Fully Allocated
Green Bond Report 2019
Swire Properties’ First Sustainability-linked Loan
Green Bond Proceeds Fully Allocated
Green Bond Report 2019
Swire Properties’ First Sustainability-linked Loan

Green Bond Proceeds Fully Allocated

The issuance of our first green bond in January 2018 is a sign of our deepening and ongoing commitment to SD. The bond raised US$500 million at a coupon rate of 3.5% and is due in 2028. The 10-year green bond was issued under our US$4 billion Medium Term Note Programme and was rated A2 by Moody’s Investors Service and A by Fitch Ratings.

This was the first bond in Hong Kong to obtain Pre-issuance Stage Certification under the Green Finance Certification Scheme by the Hong Kong Quality Assurance Agency (HKQAA). The net proceeds from the green bond have been fully allocated to the following green projects:

Category
Projects
Green Bond Proceeds Allocated1
Green Buildings
One Taikoo Place and Two Taikoo Place
HK$3,720 million
Energy Efficiency
Cityplaza, Pacific Place and Taikoo Place
HK$147 million
Renewable Energy
One Taikoo Place
HK$13 million
Sustainable Water and Wastewater Management
Taikoo Place, including One Taikoo Place
HK$11 million
Total allocated proceeds
HK$3,891 million2
1 As at 30th September 2019.
2 An independent assurance provider, PricewaterhouseCoopers has issued a limited assurance report. Please refer to pages 7 to 9 of the green bond report for further details.

Allocation of Green Bond Proceeds

(As at 30th September 2019)
Green Buildings
HK$3,720 million
(95.6%)

Details of First Green Bond

Size
US$500 million
Tenor
10-year
Issue Date
10th January 2018
Coupon
3.5%
Issue Price
99.566%
Ranking
Senior Unsecured
Joint Lead Managers & Bookrunners/Joint Green Advisors
  • Bank of America Merrill Lynch
  • HSBC
Ratings
  • A – Fitch
  • A2 – Moody’s
Certification
HKQAA
First Green Bond in Hong Kong to obtain Green Finance Certification from HKQAA
Second Party Opinion Provider
sustainalytics
Inclusion in Green Bond Indices
  • Bloomberg Barclays MSCI Green Bond Index
  • ICE BofAML Green Bond Index
Our Green Bond Framework is available online. Net proceeds are used to fund green projects meeting one or more of the following categories of eligibility recognised in the Green Bond Principles.
Renewable Energy
Renewable Energy
Energy Efficiency
Energy Efficiency
Sustainable Water and Wastewater Management
Sustainable Water and Wastewater Management
Climate Change Adaptation
Climate Change Adaptation
Green Buildings
Green Buildings

In 2019, we issued our second Green Bond Report which provides information on the bond’s green projects and estimated quantitative environmental impacts, including energy and water savings, renewable energy generation and wastewater management impacts, among others.

Reports Download

Green Bond Report 2019 (6 MB)
Green Bond Report 2018 (4.3 MB)

Swire Properties’ First Sustainability-linked Loan

In July 2019, we secured our first sustainability-linked loan, making Swire Properties the first company in Hong Kong to launch such a financing mechanism against improvement in its year-on-year environmental, social and governance (“ESG”) performance.

We reached an agreement with Crédit Agricole Corporate and Investment Bank to convert an existing five-year revolving credit facility of HK$500 million, dated August 2017, into a sustainability-linked loan, with the interest rate being indexed against improvement in the Company’s year-on-year ESG performance.

Within this loan structure, the bank will grant a reduction in interest rate each year based on the following two criteria:

  • We retain our listing on the DJSI World.
  • We achieve a target reduction in energy use intensity, measured in units of kWh/m2 each year, for our Hong Kong portfolio.

This loan will be used for investments supporting the Company’s targets set under our SD 2030 Strategy, such as the adoption of advanced energy-saving technologies, and to fund ongoing green building developments, including Two Taikoo Place.

This loan was developed with reference to the framework of the internationally recognised Sustainability Linked Loan Principles developed by the Loan Market Association, the Asia Pacific Loan Market Association and the Loan Syndications and Trading Association.

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Investor Relations

We believe in keeping our investors properly informed of our operations and our plans, in being transparent and communicating with them about all matters.

Performance (Economic) Pillar Progress

In 2019, we continued to make significant progress towards achieving our 2020 KPIs.

Corporate Governance

We conduct our affairs in accordance with high ethical standards, as we believe is imperative to act with probity, transparency and accountability.

Investor Relations

We believe in keeping our investors properly informed of our operations and our plans, in being transparent and communicating with them about all matters.

Performance (Economic) Pillar Progress

In 2019, we continued to make significant progress towards achieving our 2020 KPIs.

Corporate Governance

We conduct our affairs in accordance with high ethical standards, as we believe is imperative to act with probity, transparency and accountability.