Link Asset Management has secured a five-year sustainability-linked loan of HKD$1 billion (US$129 million) from OCBC Bank, the property company’s first such loan transaction in Hong Kong dollars.
“Green financing as part of our capital management strategy is an integral part of our vision, and this sustainability-linked loan shows our continued commitment to achieving growth in a sustainable and responsible manner,” said Kok-Siong Ng Link’s CFO.
“We are glad to have a like-minded partner like OCBC Bank to support us along this journey.”
Earlier this year Link secured another sustainability-linked loan in Australian dollars.
A key feature of the Hong Kong deal is that OCBC Bank will offer reductions in the interest rate on a tiered basis subject to Link’s environmental, social and governance (ESG) performance.
That will be measured by Link’s continued inclusion in leading global sustainability indices as well as improvements in its Global Real Estate Sustainability Benchmark (GRESB) score, a sustainability benchmark for real estate and infrastructure investments across the world.