A Hong Kong-based real estate group has broken new ground in the green finance market with its latest fundraising.
New World Development claims to have issued the first US dollar-denominated sustainability-linked bond from a real estate developer. The issuance has a sustainability performance target linked to the company’s commitment to achieving 100% renewable energy across its properties in China’s Greater Bay Area by 2025/2026.
The 10-year, $200m (£147.5m) bond was more than six times oversubscribed and priced at 275 basis points over treasuries, the lowest yield the company has achieved on a bond deal.
Adrian Cheng, chief executive of New World Development, said: “Businesses must take timely action to combat climate change… We look forward to more real estate players taking bold but necessary steps to create shared value with all stakeholders and protect the environment.”
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