SHKP signs sustainability-linked loan of HK$20.7 billion
Another record-breaking SLL in Hong Kong’s real estate sector
Sun Hung Kai Properties Limited (SHKP) today signed a five-year sustainability-linked loan (SLL) facility with 16 major international and local banks. The credit facility received an overwhelming response from the market, as it was oversubscribed by more than four times. The final size of the syndicated loan came to HK$20.7 billion, making it the largest of its kind for the real estate sector in Hong Kong.
This year’s SLL facility followed last November’s HK$8,650 million SLL for the Group, also a market record at the time. The successful formation of an SLL facility in two consecutive years shows the Group’s commitment to sustainability, as well as the banking industry’s trust in and support for the Group’s work in Environmental, Social and Governance (ESG).
SHKP Chairman and Managing Director Raymond Kwok said: “SHKP has a firm belief in promoting sustainable development. This credit facility will allow us to better leverage the Group’s resources and advantages to meet more ambitious ESG goals. Despite the challenges arising from the pandemic, we have continued to uphold our belief in Building Homes with Heart and step up our ESG efforts. This, together with our quality products and services, is conducive to making Hong Kong a better place to live and work, and nurture the next generations.”
The Group has been incorporating ESG elements into its business operations to create long-term value for its shareholders and the community as a whole. To help Hong Kong achieve a low-carbon transition and carbon neutrality, the Group is investing heavily in renewable energy generation. Its major initiatives include building solar farms and installing solar panels in its managed properties, with the Group set to be one of the largest solar panel operators in the city. In addition to constantly enhancing the environmental performance of its existing buildings, the Group targets to obtain LEED Gold or Platinum ratings for its core commercial projects under development. It has also pledged to reduce greenhouse gas emissions intensity and electricity consumption intensity of its major properties by 25% and 13% respectively by the 2029/30 financial year compared to 2019/20.
The Group places equal emphasis on safeguarding the health and well-being of the community. To help the city’s fight against the fifth COVID wave, the Group lent for free two pieces of land to the government to build community isolation facilities and provided space in two office premises as venues for community vaccination. Moreover, the Group is helping meet the short-term housing needs of the underprivileged by leasing a plot of land in Yuen Long to develop United Court, a 1,800-unit transitional housing project, which will officially open this month as Hong Kong’s largest transitional housing development to date.
SHKP’s ESG performance is well recognized by respected organizations and the financial community. The Group has been named one of the top three companies in the Hang Seng Corporate Sustainability Index (1) for three consecutive years and a constituent member of the FTSE4Good Index Series (2) since 2018. In 2022, SHKP received a rating of ‘A’ in the MSCI ESG Ratings assessment (3).
Bank of China (Hong Kong) Limited, The Hongkong & Shanghai Banking Corporation Limited and MUFG Bank, Ltd. will collectively act as sustainability advisors for the SLL facility and advise SHKP on sustainability performance targets. On top of the three advisors, the facility is also backed by Oversea-Chinese Banking Corporation Limited, China Construction Bank (Asia) Corporation Limited, DBS Bank Ltd., Industrial & Commercial Bank of China (Asia) Limited, Hang Seng Bank Limited, Bank of Communications Co., Ltd., Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, Fubon Bank (Hong Kong) Limited, Shanghai Commercial Bank Limited, United Overseas Bank Limited, Citibank, N.A. and Cathay United Bank Co., Ltd.
Bank of China (Hong Kong) Limited’s (BOCHK) Deputy Chief Executive Wang Bing said: “SHKP is committed to incorporating sustainable building elements into its new development projects and enhancing the environmental performance of its existing buildings. BOCHK is pleased to be appointed as the sustainability advisor for SHKP’s sustainability-linked loan facilities for two consecutive years. Both loans received overwhelming response from the banking community, indicating market’s affirmation and support for SHKP and the development of green finance. BOCHK strives to embed ESG considerations into our daily operations, assisting and encouraging our customers to establish sustainable business models with diversified green finance products and services.”
Jonathan Drew, Managing Director, ESG Solutions, Global Banking, The Hongkong and Shanghai Banking Corporation Limited, said: “HSBC is delighted to be working with SHKP on its latest sustainability-linked loans following its debut in November 2021. The property sector plays a critical role in reducing electricity consumption and improving sustainability metrics across Hong Kong. Issuers like SHKP who set ambitious targets that address these challenges – continue to attract the strongest investor demand.”
Tony Lee, Managing Director and Head of Global Corporate Banking, East Asia of MUFG Bank, said: “SHKP is at the forefront of the development of sustainable cities and communities. As a global leader in ESG financing, MUFG is extremely pleased to partner with SHKP in deepening its sustainability commitment. MUFG is privileged to have supported SHKP in this facility as a sustainability advisor, and looks forward to further aligning our efforts to effect positive and meaningful change in Hong Kong and the rest of the region.”
According to the loan agreement, SHKP is entitled to interest savings after meeting a set of predetermined sustainability performance targets as follows:
- Achieving a continuous increment in the proportion of green office buildings in our portfolio of core completed office buildings (4)
- Achieving an annual reduction in electricity consumption intensity (ECI, measured in units of kWh/m2)
- Demonstrating continuous improvement in the S&P Global ESG Scores (5)
The facility was signed by Sun Hung Kai Properties (Financial Services) Limited, with its parent, SHKP, providing a guarantee. It has a 30:70 split between term loan and revolving credit tranches and a maturity of five years. The proceeds will be used for general working capital and ongoing sustainability initiatives. SHKP has the highest credit ratings among property companies in Hong Kong, attaining an A1 and A+ rating with a stable outlook from Moody’s and S&P respectively.
(1) The Hang Seng Corporate Sustainability Index includes the top 30 Hong Kong-listed companies that perform well on corporate sustainability. The constituent companies of the index are assessed by the Hong Kong Quality Assurance Agency, an independent and professional assessment body, to ensure the index is objective and reliable. SHKP attained AAA, the highest rating, in both 2020 and 2021.
(2) FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that SHKP has been independently assessed according to the FTSE4Good criteria and has satisfied the requirements to become a constituent of the FTSE4Good Index Series. Created by global index provider FTSE Russell, the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE4Good indices are used by a wide variety of market participants to create and assess responsible investment funds and other products.
(3) Please refer to the MSCI disclaimer: https://www.shkp.com/html/sustainable-development/mscidisclaimer.html.
(4) Definition of green office buildings: office buildings with LEED Gold or Platinum certification or pre-certification.
(5) The S&P Global ESG Scores (formerly known as the SAM ESG Scores; Dow Jones Sustainability Index scores) is an ESG data set that provides company-, dimension-, and criteria-level scores based on the S&P Global Corporate Sustainability Assessment process, an annual evaluation of companies’ sustainability practices
SHKP’s large-scale shopping centre Chengdu ICD celebrates soft opening
Rare TOD atop a metro station at the intersection of two lines
Bringing vitality to the Chengdu business centre
Today Chengdu ICD, a shopping centre jointly developed by Sun Hung Kai Properties Limited (SHKP), Henderson Land Development Company Limited and The Wharf (Holdings) Limited, staged its soft opening. Situated on Dongda Avenue in Jinjiang District, Chengdu, ICD is a transit-oriented development (TOD), comprising a 110,000-square-metre mall and an 18,000-square-metre commercial street to provide a convenient and unique shopping experience to customers.
Chengdu ICD is the retail portion of Chengdu ICC, SHKP’s first commercial development in the south-western part of the country. Despite the challenging business environment, Chengdu ICD opened in the first half of the year to honour its pledge to the government, making it the only large-scale shopping centre in the city’s main urban area to take on the challenge. At the ceremony to celebrate its soft opening, Albert Lau, Executive Director of Sun Hung Kai Properties (China) Limited, emphasized SHKP’s positive outlook on the Chengdu market. He expressed his gratitude for the government’s strong support for the project.
Judy Chow, General Manager – Leasing of Sun Hung Kai Real Estate Agency Limited, expressed her appreciation to the first batch of tenants, comprising mainland and international brands. Some of them are new to the south-western area and are set to provide a novel experience to customers. The soft opening included three experiential art events, designed to promote a trendy, fun-filled lifestyle, radiate positive energy, and bring vitality to the urban business centre.
Chengdu ICD sits strategically atop a metro station at the intersection of metro lines 2 and 8. In addition to six exits to the station, the shopping centre provides parking at several levels, allowing drivers to enjoy direct access to each floor. It is the first shopping mall above a metro station in the city to offer such double convenience. Taking inspiration from the Shahe River flowing through Chengdu, the facade of Chengdu ICD features a ribbon-like design, infusing the mall with the distinctive vibes of Chengdu.
The Chengdu government recently released the 14th Five-Year Plan for its service industry. It pointed out that the city should develop a service sector revolving around an industrial ecosystem, with strong functional representation and a competitive edge. As stated in the Plan, the eastern Chengdu area where Chengdu ICD is located has the potential to thrive in the service sector. With its geographical advantage and premium hardware, coupled with SHKP’s extensive operational and management experience, Chengdu ICD is set to be popular with mainland and international brands and drive consumption in the area.
Sun Hung Kai Properties Hotels Debuts ‘Go Royal’ Hotel Loyalty Programme
Sun Hung Kai Properties (SHKP) Hotels launches Go Royal by SHKP, Hong Kong’s largest hotel and shopping loyalty programme that combines hotel dining, stay, leisure and shopping rewards. With the convenient Go Royal mobile app, members would be able to redeem bonus points, the same loyalty currency used by The Point, the integrated customer loyalty programme for SHKP malls across the city, at the Group’s shopping malls for fabulous rewards. The Point members could also readily enjoy exceptional accommodation or dining experiences at Royal hotels and their award-winning restaurants.
Go Royal debuts at a time when COVID-related restrictions are being gradually relaxed and the Government has launched the latest round of the Consumption Voucher Scheme to boost the economy. Customers can truly benefit with the additional rewards offered by the Go Royal membership. The new programme encompasses five Royal hotels (namely The Royal Garden, Royal Park Hotel, Royal Plaza Hotel, Royal View Hotel and ALVA Hotel by Royal) and their 20 restaurants. As The Point bonus points are also redeemable at 25 SHKP malls, Go Royal members could enjoy more extraordinary rewards after earning the bonus points with their spending at Royal hotels.
SHKP Executive Director Adam Kwok explains: “Go Royal brings together loyal guests of SHKP’s five Royal Hotels and members of The Point. To elevate customer experience, the programme comes with an easy-to-use mobile app to offer a more comprehensive, diverse and tailored experience that suits the spending habits of the new generation. Guests can easily fulfil their wish for hotel stays, dining and shopping in malls with two programmes, one single account and one set of bonus points.”
The initiative comes as another major customer experience enhancement for Hong Kong’s largest shopping mall customer loyalty platform, The Point, with a membership of over 1.8 million. Members can easily earn more points at various touchpoints. They can earn one point for every dollar spent at Royal hotels, on top of 25 SHKP malls.
SHKP Executive Director Christopher Kwok adds: “Go Royal’s alliance with The Point is a significant strategic milestone for the programme. It underscores the growing importance of The Point as a core membership programme of the Group that enhances the synergy and creates extra value for our customers and across businesses within the Group. With a customer-centric approach, we are elevating the loyalty programme to the next level for our customers, and creating more opportunities for our 1.8 million members to earn and burn their points.”
Two types of Go Royal membership are available – Go Royal, a free membership with no expiry date; and Go Royal Gold, a membership with an annual fee of HK$1,388, which offers more discounts and an array of exclusive offers.
No expiry date
Year-round 10% off on dining
Go Royal Gold
Annual fee HK$1,388
Up to 20% off on dining & 8% off on rooms booking
Both membership types are designed for those seeking luxury and convenience. Providing quality curated products and services that resonate with an elevated lifestyle, members can find the very best in life with Go Royal.
Go Royal Launch Offers
To celebrate the launch, from now till the end of July 2022, members will receive
- A HK$100 Welcome Coupon: Upon becoming a Go Royal member after free registration;
- Triple Welcome Bonus Points: The first HK$500 spending in a single qualifying transaction at any participating hotel or restaurant will earn triple Welcome Bonus points, and every subsequent HK$1 spending can earn 1 point; and
- Extra Double Bonus Points: For any qualifying spending under the Consumption Voucher Scheme at any of the Royal hotels by the end of May 2022.
*Go Royal terms and conditions apply.
Year-Round Member Benefits
Go Royal members can enjoy a whole range of hospitality, dining, and shopping rewards, including:
- Year-round 10% off on dining, up to 20% off for Gold members
- An 8% off on rooms (applicable to Gold members only)
- Gold members receive HK$1,200 worth of dining coupons and bonus vouchers for complimentary lunch buffets, birthday cakes and more.
- Earn 1 The Point bonus point for every HK$1 of qualifying hotel spending#
- Double bonus points in birthday month#
- Earn points for qualifying events held in participating hotels#
- Redeem member-exclusive rewards#
- Online hotel service via Go Royal App and WeChat Mini Programme including checking points balance, redeeming hotel rewards, room booking, table reservations, Takeaway & Delivery, and e-Shop.
#Go Royal members will start enjoying these benefits upon the first single qualifying hotel spend of HK$500 or above.
For more information, please click www.goroyal.com.hk.