Hong Kong's Link AM secures $122m sustainability-linked loan

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Hong Kong's Link AM secures $122m sustainability-linked loan

Hong Kong-based Link Asset Management has confirmed it has secured an ESG-linked loan worth $122.4m.

The loan, from DBS Bank, has a five-year term, and seeks to encourage sustainable practices through interest cost savings.

To receive these, Link has to maintain its Reit listing on global sustainability indexes, and achieve milestones based on performance on the annual Global Real Estate Sustainability Benchmark. Link said it will use the loan for general corporate funding, including sustainability initiatives.

As Asia's largest Reit, Link's maiden sustainability-linked loan underscores the growing shift towards responsible financing in the region."

The loan is structured to encourage sustainable practices, incorporating a reduced pricing structure with interest cost savings, which Link will be eligible for if it maintains its listing on leading global sustainability indices and achieves certain sustainability milestones.

George Hongchoy, Link CEO, said: "As we pursue our medium-term goals outlined in Vision 2025 and to create value for our stakeholders and the communities we serve, we are pleased to ensure the integration of sustainability best practices into our daily operations by introducing our very first sustainability-linked loan with our key relationship bank, DBS."

Chew Chong Lim, managing director and global head of real estate for institutional banking at DBS said: "As Asia's largest Reit, Link's maiden sustainability-linked loan underscores the growing shift towards responsible financing in the region."

"We look forward to forging more such collaborations as we collectively meet tomorrow's sustainability challenges."

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Christopher Copper-Ind

Christopher Copper-Ind is editor-in-chief of International Investment. Before this, he was editorial director of The Business Year, from 2014 to 2017.