The loan is a five-year unsecured committed facility, at Hong Kong Interbank Offered Rate (HIBOR) +1.8%. It has a tiered incentive mechanism where the group will be entitled to an interest reduction when its sustainability targets are achieved.
The proceeds from the current loan will be used to fund the group’s refinancing of existing borrowings, investments, working capital and general corporate purposes.
To date, the group has closed a total of US$3 billion ($4.2 billion) in sustainability-linked loans. This is as the group continues to integrate environmental, social and governance (ESG) principles into its financial management, operations and future planning.
The Hongkong and Shanghai Banking Corporation Limited (HSBC), Mizuho Bank (Mizuho) and MUFG Bank (MUFG) acted as sustainability advisors, mandated lead arrangers and bookrunners.
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Shares in Hong Kong-listed ESR Group closed 15 HK cents lower or 0.7% down at HK$21.30 on Sept 5.
