Green Financing

We are committed to integrating sustainability considerations into our financing mechanisms. By obtaining green financing through green bonds, green loans 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 sustainable development and to designing and developing sustainable projects that improve the wellbeing of building occupants and local communities.

We have targeted achieving a minimum of 50% of bond and loan facilities from green financing by 2025 and 80% by 2030.

The issuance of our first green bond in January 2018 symbolised Swire Properties’ profound and ongoing commitment to SD. The bond raised USD500 million at a coupon rate of 3.5% and is due in 2028. In 2020, our commitment deepened further, with the issuance of four more green bonds totalling HKD1,934 million.

In 2023, we secured sustainability-linked loan facilities totalling HKD7.2 billion and green bonds totalling HKD6.0 billion. By the end of December 2023, approximately 60% of our current bond and loan facilities came from green financing. Swire Properties has received a reduction in the interest rates for all our signed sustainability-linked loans by achieving predetermined sustainability-linked performance targets. In July 2023, Swire Properties became the first Hong Kong corporation to issue an RMB-denominated public green bond, known as a “green dim sum bond”. The transaction raised RMB3.2 billion, making it the largest-ever corporate green dim sum bond issuance in Hong Kong. As of the end of 2023, 100% of the net proceeds from these green bonds had been fully utilised. Together with the green loan, the proceeds have been allocated to the following green projects:

Allocation of Green Bonds and Green Loan Proceeds

(As at 31st December 2023)

Our Green Finance Report 2023 was released in April 2024, providing information on the projects funded by our green bonds and green loans and the estimated quantitative environmental impact, including energy and water saving, renewable energy generation, wastewater management practices, and other impacts.

Hong Kong’s First Dim Sum Bond Issuance

In July 2023, Swire Properties announced our inaugural public RMB green bond issuance, making us the first Hong Kong corporation to issue an RMB-denominated public green bonds, or green dim sum bonds, and the first Hong Kong corporation to return to the public dim sum bond market since 2019. The transaction was also the largest-ever corporate green dim sum bond issuance in Hong Kong.

The transaction raised RMB3.2 billion – RMB2.5 billion at a coupon rate of 3.30% due in 2025, and RMB700 million at a coupon rate of 3.55% due in 2028. The net proceeds of these bonds will be used to fund or refinance the Company’s existing or new eligible green projects, particularly our retail-led mixed-used developments in the Chinese Mainland under the Taikoo Li and Taikoo Hui brands – developments that have the world’s highest green credentials.

The bonds also support the Hong Kong government’s green financing efforts, which aim to help the city become the world’s leading green technology and green finance centre.

Swire Properties’ HKD100 Billion Investment Plan

In 2022, Swire Properties announced a HKD100 billion investment plan for developments in the Chinese Mainland, Southeast Asia and Miami, U.S.A. almost 60% of this amount has now been committed to new investments, including:

Taikoo Li Xi’an, Shaanxi Province – A retail-led project with retail and cultural facilities in addition to a House Collective hotel and serviced residences. This will be the Company’s seventh large-scale commercial development in the Chinese Mainland.

Sanya, Hainan Island – A premium, resort-style, retail-led development in Haitang Bay National Coastal Recreation Park. This will be the Company’s eighth large-scale commercial development in the Chinese Mainland.

Lujiazui Group Partnership, Shanghai – This partnership will develop two new landmarks in the heart of Shanghai’s Pudong New Area. These will be large-scale, mixed-use projects that include retail, office and premium residential components, comprising our ninth and tenth large-scale developments in the Chinese Mainland.

Six Pacific Place, Hong Kong – A 24-storey premium triple Grade A office building with a total area of around 218,000 sq ft.

The Residences at Mandarin Oriental, Miami, U.S.A. – A two-tower luxury development. The first tower, approximately 800 ft tall, will house 228 luxury branded Mandarin Oriental Residences. The second tower, approximately 400 ft tall, will feature what is destined to be the new North American flagship Mandarin Oriental Hotel, with 66 private residences, and 28 hotel residences.

Bangkok, Thailand – Swire Properties’ first investment in the Bangkok property market is a 40% interest in a site that will be developed into a luxury condominium project in partnership with a local Thai developer.

Swire Properties’ HKD100 Billion Investment Plan

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Investor Relations

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

Corporate Governance

Swire Properties is committed to conducting our affairs in accordance with high ethical standards, acting with probity, transparency and accountability.

Risk Management and Internal Controls

The Board evaluates and determines the nature and extent of the risks it is willing to take to achieve Swire Properties’s strategic objectives.

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