Chinachem Group recognises that green financing plays a key role in our broader efforts transitioning to a low-carbon economy. And to achieve meaningful results, a policy driven approach is required. Therefore in 2021 we created the Chinachem Group Green Finance Framework (CGGFF) to guide our efforts.
It’s important to work by standards recognised by our peers and stakeholders, therefore we aligned our CGGFF with the International Capital Market Association’s Green Bond Principles 2018 and the Green Loan Principles 2021, which was developed by the Loan Market Association, the Asia Pacific Loan Market Association, and the Loan Syndications and Trading Association.
The CGGFF sets out that each transaction will adhere to our defined standards, with a focus on its four key pillars:
Financing in a more sustainable manner
Working within a framework
Establishing a track record
Chinachem Group’s first Green Loan was executed in 2019, and since then the Group has secured a series of ever more ambitious sustainable financing facilities to support its People, Planet, and Prosperity based development ambitions.
Our Green Loan and sustainability linked financing timeline
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Novemeber 2023Chinachem Group and APAC’s largest real estate asset manager, ESR Group, secured Hong Kong’s first-ever Green Loan for the development of a cold storage logistics centre. The HKD8.8 billion facility was one of the year’s biggest in Hong Kong and will be used to finance the construction of Kwai Chung Cold Storage Logistics Centre, the largest of its type to be built in the city over the last 20 years.
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January 2023We successfully arranged an HKD4.8 billion five-year secured term loan facility with three major banks. Proceeds from the Facility is being used to refinance land premium payment and finance construction costs for the Group's non-industrial development project at Tung Chung Town Lot No. 45. This Project aims to obtain a Gold rating, or above, under the Hong Kong Green Building Council’s BEAM Plus certification for this Project.
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May 2022Chinachem Group and Hang Seng Bank signed an HKD1 billion sustainability-linked loan facility to support advancing the Group's sustainability goals, demonstrating our joint commitment towards furthering sustainable development in Hong Kong.
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January 2022Chinachem Group partnered with Hysan Development to arrange an HKD12.95 billion five-year secured term loan facility with six major banks. At the time, the facility was the largest green loan in Hong Kong, proceeds of which are refinancing land premium payments and construction costs for the Group's joint venture green commercial development project in Caroline Hill Road, Causeway Bay, Hong Kong. This project aims to obtain the highest ratings of green and wellness certificates both internationally and locally, including China Green Building Label, Leadership in Energy and Environmental Design (LEED) certification from the United States Green Building Council (USGBC) and BEAM Plus certification from the Hong Kong Green Building Council (HKGBC).
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December 2021Chinachem Group partnered with HSBC to arrange an HKD1 billion three-year sustainability-linked loan facility to support general working capital needs and capital expenditures aligned with the our sustainability objectives and desire to promote a greener Hong Kong's real estate sector.
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November 2019We successfully arranged an HKD5.3 billion four-year secured term loan facility with six major banks, which was extended for an additional 18-months in November 2023. Proceeds from the facility refinanced land premium payments and financed construction costs for the Group's residential development project at Ho Man Tin Package Two in partnership with MTR Corporation. This residential development aims to achieve a Gold rating or above under the Hong Kong Green Building Council’s BEAM Plus certification.