Linklaters advises on Link REIT’s inaugural US$500m Green Bonds
Linklaters was pleased to act for underwriters HSBC, JP Morgan, Merrill Lynch and the Bank of China, on Link REIT’s US$500m Green Bond due 2026. This was the first Hong Kong corporate Green Bond and the first Green Bond issued by a property REIT in Asia.
“Linklaters is proud to have been able to assist in the development and execution of this landmark transaction,” said Jonathan Horan, Capital Markets partner, Linklaters
The Bonds were issued by The Link Finance (Cayman) 2009 Limited and guaranteed by Link Holdings Limited, Link Properties Limited and the trustee of the Link Real Estate Investment Trust.
Mr Horan said the Bonds were issued off the Link REIT’s existing Medium Term Note Programme and are listing on the HKSE.
The Bonds were structured in accordance with the Green Bond Principles with the proceeds from the Bonds being specifically allocated to fund Link REIT's green initiatives, including property development and investment complying with green building standards (Hong Kong BEAM (Silver, Gold, Platinum) or LEED (Silver, Gold, Platinum)).
Link REIT has agreed to report annually on the allocation of the Green Bond proceeds. Link REIT’s Green Bond Framework was certified by the independent environmental consultant, Sustainalytics.
“Following soon after the Bank of China’s US$3b multi-tranche Green Bonds, the Link REIT transaction is further evidence of the growing Green Bond market in Asia,” Mr Horan said.
“Green bonds are becoming increasingly popular in Asia as more issuers consider the benefits of raising their sustainability profile. Linklaters expects to see the trend continuing with more green issues from Asia as the sustainability agenda, particularly from China, gains momentum,” Mr Horan added
Mr Horan said Linklaters’ involvement in green bond issues for the Agricultural Bank of China in 2015 and the Bank of China and Link REIT in 2016 point to our leadership role in this growing market.
The Linklaters team was led by Capital Markets partner, Jon Horan and counsel, Gloria Cheung in Hong Kong.
For further information please contact Nicholas Davy on +852 9700 2617.