16 banks have signed sustainability-linked loans (SLL) as much as $1.53bn with Link REIT. Link REIT or Link Real Estate Investment Trust is the largest SLL in Asia to-date as the property and real estate investment trust sector. It is the number one investment trust in Hong Kong. Its market capitalization covers the whole Asia.
The deal delivers faculty to equally split four tranches; two term loans with four, five year tenors, two revolving credit facilities of four and five years, explained IFR Asia. Lead arrangers and bookrunners lead this mandated deal. Giant banks including Bank of America and Bank of China branches in Hong Kong, CMB Wing Lung Bank, DBS Bank, HSBC, Industrial and Commercial Bank of China, and OCBC Bank led this.
HSBC is responsible as the sustainability adviser. Link REIT’s SLL is a way to project more ESG plans in the future. It includes developing green leases, encourages providers for more employment, and upgrades net zero strategy. Therefore, SLL expects to meet the net zero target standard initiatives.
A top-level all-in pricing of 88bp based on interest margins 70.5bp and 83 bp over Hibor for five year portions are what the borrowing is offering. Through Hong Kong and China’s portfolio, Link REIT aims at achieving predetermined sustainability target performance. The institution will use the loan funding for general working capital.
Moreover, one of Link REIT borrowers, Link Finance is a Hong Kong listed company. Then, Link REIT’s guarantors involve Link REIT’s subsidiary Link Properties, The Link Holdings and all SPV’s of Link REIT. Link REIT has pitched success before in 2021. It converted two bilateral loans as much as $272m into SLLs. Last two years in 2020, Link REIT signed HK$1bn for SLL. Then, its debut of SLL has reached $163m.
