HSBC And Chinachem Group Sign Bilateral Sustainability-linked Loan of HKD1 Billion

HONG KONG
SAR – Media OutReach – 8
December 2021 – HSBC and Chinachem Group (the “Group” or “Chinachem”)
announced today the arrangement of a three-year sustainability-linked loan
facility of HKD1 billion to support the Group’s general working capital and
capital expenditure in accordance with its sustainability objectives. The transaction
reinforces the ongoing commitment of both corporations in promoting green
developments in Hong Kong’s real estate sector.

HSBC and
Chinachem Group announced today the arrangement of a three-year bilateral
sustainability-linked loan facility of HKD1 billion. Photo includes Frank Fang,
Head of Commercial Banking, Hong Kong, HSBC (second left); Donald Choi,
Executive Director and Chief Executive Officer, Chinachem Group (second right);
Sunny Poon, Head of Corporate (Commercial Real Estate & Infrastructure),
Commercial Banking, Hong Kong, HSBC (first left); and Kam Por Chan, Chief
Financial Officer, Chinachem Group (first right).

For high resolution photos, please click here.

As the sole
lender and sustainability structuring bank, HSBC has innovatively structured
the facility to meet the specific operation needs of Chinachem and incentivise
the Group to fulfil a set of sustainability metrics, including reduction in energy
consumption and water consumption in both its hotels and properties under management.

Recognising
sustainability as one of its core values, Chinachem has been developing environmentally
friendly properties and advocating green practices throughout its operations.
In support of sustainable development, the Group has built green properties and
promoted green construction technologies, implemented energy-saving measures
throughout its buildings, as well as organised community activities to foster
environmental awareness.

Frank Fang,
Head of Commercial Banking, Hong Kong, HSBC, said: “Sustainability is an
increasingly critical business agenda across different sectors. We are
delighted to arrange the first sustainability-linked loan for Chinachem Group,
extending our long-term relationship to support their dedication to
contributing to the low-carbon economy. As a leading bank in the sustainable
finance market, HSBC will leverage our expertise and comprehensive solutions to
help clients navigate the net-zero transition.”

Donald
Choi, Executive Director and Chief Executive Officer, Chinachem Group, said: “As
a developer of ‘Places with Heart’, we strive to create vibrant, liveable,
sustainable and socially inclusive communities, guided by our Triple Bottom
Line of People, Prosperity and Planet. With this first sustainability-linked
loan, we aim to promote and support environmentally and socially sustainable
projects and minimise our carbon footprint. We look forward to working together
with other like-minded partners to help Hong Kong transition to a brighter,
zero-carbon future.”

HSBC has
been embedding sustainability into its products and services, including access
to capital markets, lending, transaction banking, advisory services and investments.
In addition to participating in Chinachem’s first green development club loan
for its project in Ho Man Tin, HSBC has also arranged and taken part in
numerous sustainable financing solutions tailored for companies of different
sectors and sizes.

In June
2021, Chinachem launched its Green Finance Framework to demonstrate how the
Group intends to enter into Green Financing Transactions to fund projects that
will deliver environmental benefits. To explore further opportunities to
contribute to sustainable development, the Group is also formulating a
Sustainability Development Framework that works towards realising the United
Nations’ 17 wide-ranging Sustainable Development Goals by 2030, which
epitomises the balance between financial return and community responsibility.

As part of
these sustainability efforts and to respond to increasing customer demand for
sustainable and responsible business practices, Chinachem has committed to meeting
a series of Science-Based Targets (SBT) to support the long-term viability of its
businesses and create enduring value for sustainable development. A review of
the SBT in 2021 led to the “Chinachem Group Carbon Reduction Roadmap – CCG
3050+” with a new, more aggressive carbon reduction target to cut the Group’s
carbon emissions by 51.8% in 2030 as compared with the base year of 2020.