DBS Bank (Hong Kong) Limited and Henderson Land Development Company Limited have concluded a historic bilateral loan of HKD 5 billion, marking a significant alignment of capital with Henderson Land’s objectives. This transaction not only supports the company’s sustainability initiatives but also contributes to broader social goals.
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Loan Details and Purpose
The loan package includes a four-year HKD 2 billion Sustainable Linked Loan (SLL), a five-year HKD 2.9 billion SLL, and a HKD 100 million social loan. All components of the loan are tailored to meet Henderson Land’s general financing needs while ensuring compliance with its environmental, social, and governance (ESG) commitments.
Boris Chan, CEO and Head of Institutional Banking at DBS Hong Kong, commented on the importance of the loan, stating, “DBS Hong Kong is committed to driving social development and promoting a sustainable economy. This historic transaction reflects the strength of our partnership with Henderson Land. We are proud to support Henderson Land’s ESG initiatives and contribute to a positive environmental and social impact in Hong Kong.”
Focus on Social Impact
The proceeds from the social loan will specifically be allocated to targeted community-based projects, such as transitional housing and community living spaces. These initiatives aim to assist underprivileged populations while enhancing the quality of life in urban areas.
In collaboration with Henderson Land, DBS Hong Kong has developed customized performance targets for sustainable development that align with the company’s current ESG profile and its 2030 sustainability vision.
Supporting Sustainable Growth
Andrew Fung, Executive Director and Chief Financial Officer of Henderson Land, emphasized the company’s long-standing commitment to sustainable innovation in the real estate sector: “Henderson Land has long been a pioneer in promoting sustainable innovation in the real estate industry. This important financing deal with DBS Hong Kong reinforces our commitment to sustainability and social responsibility, including reducing construction site accidents, while advancing our goals for sustained growth.”
DBS Hong Kong’s Commitment to Sustainable Finance
DBS Hong Kong continues to expand its presence in sustainable finance by structuring tailored solutions based on ESG criteria across various sectors and investing in civic initiatives. This deal highlights the growing prominence of bilateral sustainable finance solutions within Asian capital markets.
As the demand for sustainable investment and financing solutions increases, this agreement between DBS Hong Kong and Henderson Land underscores the broader trend of integrating environmental and social responsibility into corporate financing strategies, contributing to the development of more sustainable, resilient communities in Hong Kong and beyond.
This article is originally published on: esgnews
