In reference to the Green Bond Principles 2018 and Green Loan Principles 2018, the New World Development Green Finance Framework, established in September 2018, outlines the eligibility criteria of green projects and how we manage and report the use of proceeds. Several green bonds and green loans have been raised successfully under the framework. A Second-Party Opinion was obtained from Sustainalytics.

TheNew World Development Sustainable Finance Framework was established in 2020 to expand the scope of our Green Finance Framework. This framework references the Green Bond Principles 2018, Green Loan Principles 2018, Social Bond Principles 2020, and Sustainability Bond Guidelines 2018. It outlines the eligibility criteria of green and social projects and how we manage and report the use of proceeds. A Second-Party Opinion was obtained from Sustainalytics.

The New World Development Sustainable Finance Framework has been updated in 2022 to stay up-to-date with evolving international standards and best practice. This framework aligns with the Green Bond Principles 2021, Social Bond Principles 2021, Sustainability Bond Guidelines 2021, Green Loan Principles 2021 and Social Loan Principles 2021. A Second-Party Opinion was obtained from Sustainalytics.

The New World Development Sustainable Finance Framework was last updated in July 2022. A Second-Party Opinion was obtained from Sustainalytics.

Echoing NWD’s SV2030 commitment and our corporate mission to create shared value, in June 2022, we issued the world’s first USD-denominated social and green dual tranche offering in the public bond markets, consisting of a 5-year US$200 million Social bond (coupon rate: 5.875%), priced at T+290 basis points, and US$500 million Green perpetual bond (coupon rate: 6.15%). The social bond is also Asia’s first USD-denominated social bond issued by a non-financial corporate. It demonstrates our commitment to creating shared value for stakeholders. As at 30 June 2023, proceeds from this social bond have yet to be allocated.

In November 2022, we issued our first social loan with proceeds allocated to Kai Tak Sports Park (“KTSP”), the largest sports infrastructure project ever undertaken in Hong Kong. The three-year, revolving trade facility of up to HK$800 million loan supports the development of the 28-hectare sports and entertainment precinct, which will include recreation, retail, wellness and community spaces that enhance sports participation and social inclusion when completed. Loan proceeds may fund the construction, development, and refurbishment of KTSP’s public sports ground and neighbourhood park, as well as facilities with hiring charges such as badminton and basketball courts. This social loan has obtained external pre-issuance review to assess the loan’s compliance with the criteria of our Sustainable Finance Framework.

During FY2023, we conducted our first external post issuance limited assurance on proceeds allocated to eligible green and social projects via active green and social bonds and loans as at 30 June 2023. The limited assurance report can be found in the Downloads section of the “Performance & Reporting” tab.

In November 2019, NWD raised the Group’s first sustainability-linked loan (SLL) from DBS Bank Hong Kong. This five-year loan of HK$1 billion has equal tranches of term loan and revolving loan. Proceeds will fund measures to drive long-term sustainability targets, enhance the climate resilience of our property portfolio, as well as general corporate financing. The Group will benefit from discounted interest rates when pre-determined sustainability milestones are achieved, including NWD’s environmental impact reduction targets (refer to the latest annual report for more) which form part of the Group-wide SV2030 targets, as well as key performance indicators (KPIs) ranked annually by GRESB. This loan is the first in Asia to link with GRESB performance.

In November 2020, NWD and DBS Bank Hong Kong completed Hong Kong’s first-ever interest rate swap linked to the United Nations Sustainable Development Goals (UN SDGs). This derivative transaction is designed to provide a hedge against the interest rate risk related to NWD’s 5-year HK$1 billion SLL from DBS, which closed in November 2019. Under this innovative solution, NWD is eligible to receive sponsorship from DBS to support social innovation projects, if NWD successfully generate at least eight business-to-business integration opportunities that contribute to the UNSDGs adopted by SV2030. As of 30 June 2021, NWD successfully surpassed this target.

In December 2020, referencing the same set of sustainability targets and KPIs from the first SLL, NWD raised its second SLL from Bank of China (Hong Kong). This five-year loan of HK$2 billion consists of a HK$1.5 billion term loan and a HK$500 million revolving loan. Proceeds will finance the general working capital of the Group.

In June 2021, NWD issued a SLL, consisting of 7-year JP¥13.5 billion and 5-year HK$1.15 billion term loan facilities. And in September 2021, NWD issued a 3-year SLL of HK$500 million. These two loans are linked to our performance on the S&P Global Corporate Sustainability Assessment (CSA).

In April 2022, echoing with NWD’s SV2030 commitment, NWD issued a 3-year HK$1 billion SLL, linked to selected environmental impact reduction targets and our performance on the S&P Global CSA.

In June 2022, NWD further issued a 3-year HK$500 million SLL, linked to our performance on the S&P Global CSA.

In July 2022, NWD issued a 3-year HK$4.11 billion SLL, linked to selected environmental impact reduction targets, S&P CSA performance, and CSV Lease adoption.

In February 2023, NWD further issued a 5-year HK$2 billion SLL, linked to S&P CSA performance and CSV Lease adoption.

In accordance with the International Capital Market Association (ICMA) 2020 Sustainability-Linked Bond Principles, NWD has developed a Sustainability-Linked Bond (SLB) Framework. NWD understands that by supporting climate change mitigation through the extensive adoption of renewables, it can assume a catalytic role in addressing the climate crisis. We hope our issuances will generate momentum for sustainable development in Greater China and inspire other similar companies to join our ranks.

A Second-Party Opinion was obtained from Sustainalytics.

In early January 2021, NWD reached a new milestone in sustainable finance by becoming the first real estate developer in the world to issue a USD-denominated SLB. The bond was 6 times oversubscribed by international ESG investors at its peak and achieved the lowest yield yet for a public USD bond offering by NWD. The 10-year US$200 million bond (coupon rate: 3.75%) has a Sustainability Performance Target that is aligned with NWD’s latest Renewable Energy Roadmap, which commits to achieving 100% Renewable Energy for NWD’s Greater Bay Area rental properties by FY-end 2025/26. Should NWD fail to achieve the target, the Group will purchase carbon offsets in an equivalent amount to 25 basis points per annum for the remaining life of the bond. This forms part of NWD’s ongoing commitment to ESG integration and to support further decarbonisation within its property business beyond SV2030 targets. In view of overwhelming investor interest, NWD priced an additional HK$1.5 billion SLB in February 2021, a 10-year private placement (coupon rate: 3.5%) and the world’s first HKD-denominated SLB.

Proceeds of the bonds will be allocated to NWD’s long-term sustainability initiatives, as well as general corporate purposes.