New World Development (017) participated in the sustainability performance-linked loan for the first time, and signed a 5-year 1 billion yuan agreement with DBS Hong Kong to promote long-term sustainable development goals, measures to enhance the resilience of climate change in buildings, and Corporate finance and refinancing
The sustainable development loan is divided into term loans and revolving loans of 500 million yuan each. According to the agreement, when the New World development standards are met, loan interest rates will be reduced, including reducing greenhouse gas emissions, energy, water consumption and waste generation from its buildings; and participating in the assessment of the Global Real Estate Sustainable Standards (GRESB).
500 million each in term and revolving loans
New World Development Executive Vice Chairman Zheng Zhigang said that the sustainable development loan affirms its goal of improving environmental, social and governance (ESG) performance, and will continue to explore other sustainable financing to promote the company’s strategic development. Director of Sustainable Development Deng Yewei pointed out that the use of corporate loans and internal environmental improvement goals, as well as the ratings provided by GRESB, demonstrate the financial value of improving ESG performance in the long run.
New World Development has scored 90 points in the GRESB assessment this year, which is higher than the global average of 72 points
It is the highest level and the highest score for diversified listed companies in East Asia. Last year, New World China also issued a five-year, US $ 310 million senior guaranteed unrated green bond with an interest rate of 4.75%. DBS is its global co-ordinator and the funds are used for two green projects in the Greater Bay Area.