New World Development has signed a five-year HK$1 billion loan with DBS which includes sustainability-linked conditions leading to interest rate discounts.
The mutually agreed rate discounts are based on two benchmarks which include, firstly, environmental targets for the property developer to reduce greenhouse gas emissions, construction waste, and consumption of energy and water. The second benchmark is based on key performance indicators that assess the overall sustainability management of the company, as set by the Global Real Estate Sustainability Benchmark.
«This sustainability-linked loan confirms our goal to improve environmental, social and governance performance in our businesses,» said Adrian Cheng, executive vice-chairman and general manager of New World Development. «We will continue to explore other possibilities in sustainable financing to drive our company strategy forward and bring positive change to the society.»
The $127 million sustainability-linked loan, which will be split into two equal tranches for a term and revolving loan, is the first for the property giant. According to a release, the proceeds will be used to «enhancing buildings’ climate resilience, as well as general corporate funding and refinancing purposes».
