Hong Kong’s Link Reit issues US$500 million green bond

Property investment giant Link Reit, which has faced a torrent of criticism from politicians and government officials on its profit-driven practise of pushing up rents and driving out small retailers, has become Hong Kong’s first issuer of a so-called green bond to finance projects that help protect the environment.

The US$500 million issuance is a landmark deal for the city, which is catching up on a global trend for green finance.

The sector’s development has been encouraged by the government-appointed Financial Services Development Council (FSDC).

“The net proceeds of the issuance will be used to refinance or fund, in whole or in part, existing and future projects that are eligible,” said a document seen by the Post, prepared by Sustainalytics, which has been hired to review and provide opinion on the bond’s “green” credentials.

Projects eligible for the proceeds include buildings that have third-party verification for meeting “green building” standards, and those resulting in at least a 15 per cent improvement in energy efficiency.

Also acceptable are projects that reduce waste sent to landfill, improve water usage efficiency, promote adoption of low carbon transportation such as electric vehicles, and improve climate change resilience.