UOB and HSBC acted as green loan coordinators on club loan facilities of HK$1.85 billion to a Gaw Capital Partners-led consortium (“the Consortium”). These facilities comprise a US$110 million (HK$853 million) offshore loan and a RMB837 million (HK$992 million) onshore loan. Maybank, BNP Paribas and KGI also participated in the club deal.
The loan proceeds will be used to refinance the existing loans for the Consortium’s acquisition of four premium office buildings1 at Shanghai MixC, a set of quadruplet eight-storey buildings in Minhang District, Shanghai, China. The buildings have received the LEED v4 Building Operations and Maintenance: Existing Buildings Gold certification2 from the US Green Building Council for their environmentally-friendly features. The features include LED lights for the office lobby, control measures at elevators to conserve energy, environmentally-friendly architectural paints sourced in local market to reduce transport emissions, as well as garbage classification for better waste management.
The loan facilities support the Consortium’s continued efforts in implementing its sustainability strategy to improve environmental performance and to contribute to the United Nations’ Sustainability Development Goals.
Ms Christina Gaw, Managing Principal & Global Head of Capital Markets of Gaw Capital Partners, said, “At Gaw Capital, ESG considerations are essential to our investment selection criteria and asset management. We look for opportunities to enhance value in assets that we acquire through ESG measures and aim to reduce the assets’ carbon footprint. Investors consider green and energy-efficient buildings a necessity in the long run and we strongly believe that environmentally sound real estate will lead to better performance and well-being of a property’s users.”
Mrs Christine Ip, CEO – Greater China, UOB, said, “Green and energy-efficient features will increasingly be the norm for premium office buildings as we transition into a low carbon economy. We are pleased to walk alongside Gaw Capital Partners, our longtime partner, in its sustainability journey. This is part of UOB’s commitment to forging a sustainable future with our clients by supporting their sustainable business models as they advance responsibly.”
Mr Frank Fang, Head of Commercial Banking, Hong Kong, HSBC, said, “As a leading bank in the sustainable finance market, HSBC strives to support the business community in fulfilling their ESG agenda and contributing to a net-zero economy. With sustainability being key to the development of real estate sector, it is our pleasure to work with Gaw Capital Partners to help shape the future of green buildings together.”
1Four premium office buildings namely Tower A, B, C and D at Shanghai MixC.
2 https://www.usgbc.org/guide/om
