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Hang Lung gets maiden HK$1b green loan from OCBC
OCBC Bank has taken another step towards its target of achieving a S$10 billion sustainable finance portfolio by 2022.
The lender's Hong Kong branch has issued a HK$1 billion (S$174.1 million) green loan to Hang Lung Properties, a property developer headquartered in Hong Kong. This is Hang Lung's first green loan, said OCBC in a news release on Monday.
The proceeds will be used to finance commercial property development projects in mainland China that have received gold certifications or pre-certifications issued by the US Green Building Council of Leadership in Energy and Environmental Design, promoting sustainable development in the real estate industry on the mainland.
This green loan has been issued under Hang Lung's Green Finance Framework. Sustainalytics, a global provider of ESG research and ratings, has reviewed and confirmed the framework to be "credible and impactful", said OCBC.
Hang Lung has been selected as an index component of the Dow Jones Sustainability Indices in the Asia-Pacific Index for two consecutive years since 2017, a recognition of its achievements in corporate sustainability.
"We are proud to support Hang Lung's ambition of spearheading green developments in Hong Kong and mainland China," said OCBC's regional general manager for North East Asia, Tan Wing Ming.
"This green loan is the latest sustainable finance transaction to come out of OCBC Hong Kong Branch and positions the bank well to capture the growing green finance opportunity in the Greater Bay Area."
Last week, it was announced that OCBC topped two 2019 sustainable finance league tables for the Asia-Pacific region, excluding Japan.
In Bloomberg's 2019 mandated lead arranger (MLA) league table for green loans and renewable energy loans, OCBC ranked first with US$1.01 billion worth of loans across 14 deals as at Dec 18.
The bank had US$1.26 billion of loans across 15 deals as at Dec 17, to take first place in Debtwire's MLA league table for green loans and sustainability-linked loans.