Hong Kong Developer World's First To Price USD Sustainability-Linked Bond
<span style="font-weight: 400;">New World Development Company Limited has become the first real estate developer in the world to price a USD Sustainability-Linked Bond (SLB). The SLB was oversubscribed by 6 times at its peak, with strong participation from international ESG investors (~80%) includin
Published -
Jan 15, 2021 6:37 AM
New World Development Company Limited has become the first real estate developer in the world to price a USD Sustainability-Linked Bond (SLB). The SLB was oversubscribed by 6 times at its peak, with strong participation from international ESG investors (~80%) including renowned fund managers, asset managers and insurance companies across Asia and Europe. This deal was priced at T+275 basis points, implying negative 5 basis points new issue premium, and it also achieved the lowest yield yet for a public USD-denominated bond offering by NWD. The 10-year USD200 million bond (coupon rate: 3.75%) has a Sustainability Performance Target that is aligned to the Company’s latest “Renewable Energy Roadmap”[1], which commits to achieving 100% Renewable Energy[2] for NWD’s Greater Bay Area rental properties[3] by Financial Year (FY) end 2025/26. The performance against the target, which will be reviewed by a third-party assurance provider, until the SLB matures in 2031. Should NWD fail to achieve the target, it will purchase carbon offsets in an equivalent amount to 25 basis points per annum from 2027 until the SLB matures. The proceeds of the SLB will be allocated to NWD's long-term sustainability initiatives, as well as general corporate purposes.
Tags : INTERNATIONAL price USD Sustainability-Linked Bond New World Development Company Limited Hong Kong Developer