OCBC furthers its commitment to achieving a S$10 billion sustainable finance portfolio by 2022 with its latest green loan to Hong Kong-based developer Hang Lung.
Hang Lung secured an HK$1 billion ($128 million) green loan facility from the OCBC to finance commercial property development projects in mainland China. The maiden green loan will be used to support projects that have received «gold certifications» or «pre-certifications» issued by the U.S. Green Building Council of Leadership in Energy and Environmental Design (LEED), which promotes sustainable real estate development in mainland China.
We are proud to support Hang Lung’s ambition of spearheading green developments in Hong Kong and mainland China, said Tan Wing Ming, regional general manager for North East Asia at OCBC Bank. This green loan is the latest sustainable finance transaction to come out of OCBC Hong Kong Branch and positions the bank well to capture the growing green finance opportunity in the Greater Bay Area.
According to a statement issued by Hang Lung, the loan was issued under its «Green Finance Framework» which is in line with the industry standard 2018 Green Bond Principles and 2018 Green Loan Principles. Global ESG research and ratings provider Sustainalytics had reviewed and confirmed the framework to be credible and impactful, the statement added.
The green loan adds to OCBC’s portfolio and its ambitions to build a $7.4 billion sustainable finance portfolio by 2022. According to a recent Bloomberg league table, the Singaporean lender is already a leader in the field, ranking first in green and renewable energy loans in the Asia ex-Japan region at more than $1 billion in 2019 – a 7 percent market share.