Hong Kong-based real estate developer Chinachem Group ( CCG ) has secured an HK$8 billion ( US$1.03 billion ) syndicated loan facility, marking its debut in the syndicated loan market and establishing a new benchmark for sustainable finance in Asia.

As the region's first syndicated loan to combine green, social and sustainability-linked components, the facility saw final commitments from 12 international, regional and local banks, and was oversubscribed by over 2.5x the initial target.

According to CCG, the strong market response reflects its exceptional financial position and strong corporate governance. This comes amid the cautious market environment and geopolitical tensions.

The company says the loan will further bolster its financial and liquidity position, enabling it to continue investing, driving growth, and delivering sustainable long-term value. The facility’s innovative financing structure also creates a replicable model for aligning financial instruments with sustainable urban transformation, CCG says.

Carbon reduction goal

"This triple-themed facility exemplifies our vision of building sustainable legacies – where environmental stewardship, social responsibility and financial performance converge,” comments Peter Brien, chairman and independent non-executive director of Chinachem Group Holdings.

Brien says the loan will accelerate the company’s CCG 3050+ carbon reduction roadmap, which commits by 2030 to reduce its carbon intensity by at least 51.8% from its 2020 baseline.

“By aligning financing with measurable sustainability outcomes, we're institutionalizing responsible development at every level of our business," he stresses.

Andy Cheung, CCG’s executive director and chief executive officer, adds: “The facility provides both the capital and accountability framework we need to deliver lasting value – for our stakeholders, our communities and our urban environment."

The facility operates under the company’s enhanced sustainable finance framework, which is fully aligned with the Hong Kong Taxonomy for Sustainable Finance"published by the Hong Kong Monetary Authority.

Participating banks

Bank of China ( Hong Kong ), DBS Bank Hong Kong, Hang Seng Bank, and The Hongkong and Shanghai Banking Corporation acted as mandated lead arrangers and bookrunners.

Mandated lead arrangers were Fubon Financial Holding, Bank of Communications ( Hong Kong ), and Industrial Bank, Hong Kong Branch.

Also supporting the facility were OCBC Bank ( Hong Kong ) as lead arranger, and Bank of East Asia, China Everbright Bank, Hong Kong Branch, Chiyu Banking Corporation, and Nanyang Commercial Bank as arrangers.

Hang Seng Bank acted as the facility agent while the Hongkong and Shanghai Banking Corporation was the sole ESG coordinator.