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:
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.
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:
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.