Fortune REIT Obtains Sustainability-Linked Loan of HK$1.5 Billion (US$190 Million) from OCBC Bank
July 16, 2021 – Fortune Real Estate Investment Trust (REIT) announced that it has secured a 5-year sustainability-linked loan worth HK$1.5 billion (US$190 million) from OCBC Bank, which is the sole lender and sustainability advisor for the facility. The facility is the latest sustainable financing for Fortune REIT, reinforcing the REIT’s ongoing commitment in integrating sustainability into its operations.
The loan will be used to refinance Fortune REIT’s existing club facility and for general corporate funding purpose. The interest margins of the loan facility will tie to a set of predetermined environmental, social and governance (ESG) targets, including reduction in electricity consumption, greenhouse gas emissions and waste reduction in general of its properties.
The annual performance of these ESG metrics will be assessed by an external independent party, where Fortune REIT will be entitled to interest rate savings for the loan when the predetermined ESG targets are achieved.
Ms Justina Chiu, Chief Executive Officer of the Manager, said, “This is Fortune REIT’s second green financing initiatives, which has more than doubled our sustainability-linked loan facilities to an aggregate of HK$2.5 billion now.”
“These sustainability-linked credit facilities reflect the depth of our commitment to advancing Fortune REIT’s ESG goals. By tying our environmental metrics to our financial performance, we aim to achieve positive sustainable impact in our business while showing our support in the development of sustainable capital markets in Hong Kong.”
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