ESR and Chinachem close Hong Kong’s first-ever $1.13b Green Loan for logistics center development
ESR Group and Chinachem Group have closed Hong Kong’s first-ever green loan for the development of a logistics center.
The HK$8.8 billion ($1.13 billion) Green Loan is one of the biggest in Hong Kong in 2023. It will be used to finance the construction of Kwai Chung Cold Storage Logistics Centre, Hong Kong’s largest cold storage facility to be built in the last 20 years.
This five-year committed green loan is in alignment with the Green Loan Principles issued by the Loan Market Association, Asia Pacific Loan Market Association and Loan Syndications & Trading Association. The Green Loan Principles focus on the following four core components: (1) use of proceeds, (2) process for project evaluation and selection, (3) management of proceeds, and (4) reporting.
In support of the efforts of ESR and Chinachem Group to further strengthen their environmental, social and governance (ESG) commitments, Sumitomo Mitsui Banking Corporation (SMBC), United Overseas Bank