16 Dec 2019

Link’s $4 Billion Green Convertible Bond, a First for the Real Estate Sector Worldwide, Announced as a 2019 IFR Awards Winner

  • Link’s $4 billion green convertible bond named as IFR’s Asia-Pacific Structured Equity Issue of the Year for 2019
  • The issue was the first ever in the global real estate sector and in Hong Kong

The green convertible bond (the Bond) issued by Link REIT (Link) in March 2019 was named as the Asia-Pacific Structured Equity Issue of the Year at the IFR Awards 2019.

The issue was the first major sign that the equity-linked market can play a role in the transition to a more sustainable future and set a precedent for green financing in Asia’s equity-linked market, according to IFR.

IFR’s award report also stated, “Link captured an optimal market window, pricing the deal after its unit price had rallied 35% in the previous 12 months and amid a dearth of new issuance in Asia’s equity-linked market,” adding, “The timing gave Link first-mover advantage in a busy year for REIT financings.”

Link is the first issuer in the real estate sector worldwide and in Hong Kong to have issued a green convertible bond. Due 2024, the Bond was issued in March 2019, raising $4 billion (US$500 million) at 1.6% per annum, the lowest coupon rate achieved by an Asian REIT over the past five years. The Bond received an “A” rating from Standard & Poor’s. The Bond was allocated to a balanced mix of Asian and European investors at an initial conversion price of $109.39 per unit, subject to adjustments.

HSBC and JP Morgan led the deal, with HSBC advising on the green structure. The proceeds are being used to refinance or fund Link’s existing and future eligible green projects under its Green Finance Framework, which received a second opinion from Sustainalytics and the Hong Kong Quality Assurance Agency.

In July 2016, Link became the first Hong Kong business enterprise and the first property company in Asia to tap green financing in Asia-Pacific by issuing the first green bond in Hong Kong.

For more details about Link’s IFR award, please visit: https://www.ifre.com/story/2135469/americas-structured-equity-house-knp4skl0hr

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