Hongkong Land today announced that it has successfully priced its inaugural green bond (the “bond”), raising US$500 million at a coupon rate of 2.25% per annum with a 10-year maturity.
The bond was allocated to a mix of Asian and European institutional investors, and was three times oversubscribed. The successful pricing of this bond underscores Hongkong Land’s commitment to both sustainability and development of green financing in the region.
The net proceeds from this inaugural green bond will be used to fund the Group’s initiatives that relate to green buildings, energy efficiency, renewable energy, clean transportation, sustainable water management, and climate change adaptation in accordance with the newly established Hongkong Land Green Financing Framework (the “GFF”).
Mr Simon Dixon, Chief Financial Officer of Hongkong Land, said, “The successful pricing of Hongkong Land’s first green bond represents another significant step taken by the Group towards integrating sustainability in all aspects of our business, and further underscores our ongoing commitment to the development of green capital markets.”
The bond has been rated A2 and A by Moody’s and S&P Global Ratings, respectively.
Approval in principle has been received from the Singapore Exchange (the “SGX”) for the bonds to be admitted to the Official List of the SGX Main Board.
Hongkong Land’s GFF received a full alignment opinion from S&P Global Ratings with respect to the latest Green Bond Principles issued by the International Capital Market Association and Green Loan Principles issued by the Loan Market Association.
The Hongkong and Shanghai Banking Corporation Limited acted as the green structuring advisor and the sole global coordinator. Bank of China (Hong Kong) Limited, DBS Bank Ltd., and The Hongkong and Shanghai Banking Corporation Limited acted as joint lead managers and joint bookrunners for the offering.