DBS And Henderson Land Seal $640M ESG Loan Deal

In a historic decision reaffirming their mutual dedication to sustainable development, Henderson Land Development Company Limited and DBS Bank (Hong Kong) Limited have successfully closed a HKD 5 billion bilateral financing transaction. The agreement includes sustainability-linked and social loan elements in line with both Henderson Land's long-term ESG targets and Hong Kong's changing sustainability framework.

The funding package comprises three significant tranches: a HKD 2 billion four-year sustainability-linked loan (SLL), a HKD 2.9 billion five-year SLL, and a HKD 100 million social loan. The deal structure demonstrates a well-planned strategy to not only meet corporate funding needs, but also to provide quantifiable environmental and social benefits to the community.

This transaction represents an important milestone in DBS Hong Kong and Henderson Land's cooperation, demonstrating a long-term partnership based on common values. Both sides have cooperatively formulated tailored sustainability performance targets aligned with Henderson Land's current ESG track record and its 2030 sustainability goal. Targets aim to further the company's continuous work towards minimizing environmental footprint and enhancing workplace safety, for example, minimizing accidents on construction sites.

Boris Chan, Head of Institutional Banking Group and Managing Director at DBS Hong Kong, highlighted the bank's long-term dedication to social development and the sustainable economy. "This milestone transaction reflects the long-standing collaboration with Henderson Land. We are delighted to accompany Henderson Land's ESG journey and make a positive environmental and social contribution to Hong Kong," he stated. Chan emphasized the significance of using finance as a tool to create positive impacts outside of profit, underscoring DBS's role in driving Hong Kong's sustainable finance landscape.

Andrew Fung, Executive Director and Chief Financial Officer of Henderson Land, echoed this view, citing the company's long history as a leader in sustainability within the real estate industry. This important financing deal with DBS Hong Kong reaffirms our dedication to social responsibility and sustainability," he said. Fung also noted that the transaction is an important contribution to Henderson Land's pursuit of long-term growth while fulfilling larger social responsibilities. "From urban livability to improving safety on construction sites, our ESG agenda is forward-looking and inclusive," he said.

The funds from the HKD 100 million social loan will be used particularly in projects like Transitional Housing and Community Living Room projects. These initiatives aim to provide temporary housing opportunities and public places that promote interaction among communities, social inclusion, and well-being to under-served communities. These projects also have the potential to be effective in addressing the urban housing problems and improving living standards of underprivileged groups.

The strategic financing serves not only to address Henderson Land's overall financing requirements but also reflects the enhanced momentum of bilaterally-arranged sustainable finance solutions for Asia's markets. As Hong Kong establishes itself as a hub for green and sustainable finance across the region, this transaction represents how private capital can be productively mobilized to fund initiatives of public benefits while upholding robust governance and financial discipline.

DBS Hong Kong has been proactively growing its footprint in sustainable finance by crafting tailored ESG-led facilities across a range of sectors. The bank's attention is not just on green finance but a wider social impact frame of reference, with an awareness that full sustainability has to address both environmental and man-centric aspects.

The smooth completion of this HKD 5 billion financing package is a new standard for public-private partnership in sustainability. Not only does it demonstrate the financial power and strategic vision of Henderson Land but also indicates the role banks such as DBS can play in driving responsible growth. With ESG considerations increasingly becoming the preference with investors and regulators alike, deals like these indicate the efficacy of reproducible, impactful, and inclusive finance frameworks for meeting corporate and societal objectives.