15 Jul 2016

Link REIT issues green bond

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​Link Asset Management Limited (“Link Asset Management”), as manager of Link Real Estate Investment Trust (“Link”; Hong Kong stock code: 823), announced today that it has successfully priced its first green bond, raising US$500 million at 2.875% fixed rate due 2026, one of the lowest rates ever achieved by a Hong Kong corporate. This is the first green bond issue by a Hong Kong business enterprise and the first such issue by a property company in Asia.  The bond has been rated “A2” and “A” by Moody’s and S&P’s respectively. The proceeds from the bond are specifically earmarked to fund Link’s green initiatives, reinforcing our commitment to sustainable development. Application will be made to list the Notes on The Stock Exchange of Hong Kong Limited.
 
Christine Loh, Under Secretary for the Environment of the HKSAR Government, said, “We are pleased to see Link’s successful entry into the green bond market. The benefit of this corporate initiative is two-fold: it helps improve Hong Kong’s resilience to the impacts of climate change and demonstrates that there is real and growing appetite in the financial sector for investing in responsible and sustainable companies.”
 
George Hongchoy, Chief Executive Officer of Link Asset Management Limited, said, “In advancing our vision to become a world-class real estate investor and manager that improves the lives of those around us, we promote long-term business performance by linking sustainable development with everything we do. Our inaugural green bond provides a direct link between our corporate sustainability initiatives and capital markets through allocating capital specifically for building thriving low-carbon communities.”
 
“The notes received strong demand from international institutional investors and banks. The proceeds from the issuance will partly be used to finance our Kowloon East office project, a commercial project that will be built to HK-BEAM Platinum and LEED Platinum green building standards. These green efforts will help enhance the long-term value of Link’s portfolio, while reducing our carbon footprint and promoting environmental sustainability.”
 
The green bond is prepared according to the Green Bond Principles which includes an independent second opinion of Link’s green bond framework. Link will report annually on the allocation of proceeds through its integrated annual report and on Link’s corporate sustainability website.
 
HSBC, BofA Merrill Lynch, Bank of China (Hong Kong) Limited and J.P. Morgan are the lead arrangers for the bond issuance. HSBC and BofA Merrill Lynch are the green bond advisors.
 

 

 

 

 

 

 

 

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