New World sells US$200 million of sustainability-linked bonds to steer its real estate projects towards renewable energy

The proceeds of the bond will be allocated to New World’s long-term sustainability initiatives, as well as general corporate purposes, the company said

If New World does not meet its target of 100 per cent renewable energy on the designated rental properties by 2026, then the company will buy carbon offsets

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Shoppers seen at K11 Musea in Tsim Sha Tsui amid the third wave of coronavirus infections on 12 September 2020. Photo: Xiaomei Chen

Published: 9:00am, 10 Jan 2021Updated: 2:10pm, 19 May 2021

New World Development has become the first real estate developer to launch a 10-year US$200 million sustainability-linked bond, using the funds to help it achieve full use of renewable energy for rental properties in Greater Bay Area by 2026.

The proceeds of the bond will be allocated to New World’s long-term sustainability initiatives, as well as general corporate purposes, the company said in a statement.

“Businesses must take timely action to combat climate change,” said Adrian Cheng, executive vice-chairman and chief executive of New World. “We look forward to more real estate players taking bold but necessary steps to create shared value with all stakeholders and protect the environment.”

New World will “contribute to a cleaner future for the next generations,” Cheng said, as it “expands in the Greater Bay Area” and targets to achieve 100 per cent renewable energy for rental property in the region, comprising 11 cities in southern China including Hong Kong and Macau.

The focus on sustainability is part of the “human-centric” approach charted by Cheng since taking over from his father in the driving seat of one of Hong Kong’s largest conglomerates, with businesses from retail sales to telecommunications and real estate. The approach can help unravel the complexities of a new generation of consumer behaviour and make New World more sustainable and powerful in the future, he said during a November interview.

Adrian Cheng Chi-Kong, executive vice-chairman and general manager of New World Development, at the company’s annual results press conference in Wan Chai on September 2019. Photo: Tory Ho

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