Link Asset Management Limited, manager of the Link Real Estate Investment Trust, has launched its first green bond to raise $500m.
This is the first green bond issued by a Hong Kong business enterprise and the first issued by a property company in Asia. The bond has a 2.875 percent coupon rate due 2026.
The proceeds from the issuance will partly be used to finance the Kowloon East office project, a commercial project that will be built in accordance with Link’s commitment to green initiatives.
“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,” said George Hongchoy, CEO of Link Asset Management.
“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,” he added.
The bond has been rated “A2” and “A” by Moody’s and S&P’s respectively.
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.
According to a local press report, the HKD$10.5 billion ($1.5 billion) Kowloon East development project is jointly led by Link and Nan Fung Development, each contributing 60 percent and 40 percent of funding respectively. The 884,000 sq ft development is expected to finish at the end of 2019 with retail space, offices and a car park.
Link Real Estate Investment Trust is the first real estate investment trust listed in Hong Kong, and one of the world’s largest retail-focused REITs in terms of market capitalisation. Its portfolio consists of 10 million sq ft of retail space, around 72,000 car park spaces and a project under development in Hong Kong, as well as properties with about 1.8 million sq ft of retail and office space in Mainland China.