The deal pays an opening interest margin of 220 basis points over the risk-free Hong Kong Interbank Offered Rate, the people added.
HKBN didn’t immediately respond to a request for comment.
Asia-Pacific companies have increasingly incorporated environmental, social and governance-linked elements into their financings as they look to boost their decarbonisation efforts.
Borrowers in Asia-Pacific outside Japan raised US$66.5 billion ($90.08 billion) of sustainability-linked loans in 2024, a 37% jump from the year prior, according to Bloomberg-compiled data.
See also: UOB enhances sustainable financing frameworks, granting SMEs easier access
The interest margin of HKBN’s latest facility is tied to its net leverage ratio, and will be reduced if the company meets targets related to its carbon emissions and staff training on cybersecurity issues, the people said.
US infrastructure-focused fund I Squared Capital has recently shown interest in HKBN, edging closer to a buyout offer, Bloomberg reported earlier this month. That could potentially set up a bidding war with China Mobile for the Hong Kong-listed broadband provider.
