Hong Kong-listed Link Reit becomes world’s first real estate trust to issue green convertible bond
- The proceeds will be used to refinance or fund Link’s existing and future eligible green projects
Link Reit, Asia’s biggest property investment trust, is selling a HK$5 billion (US$640 million) green convertible bond, making it the world’s first real estate company to issue such a bond.
In a filing to Hong Kong stock exchange, Link Asset Management, the manager of Link Reit, proposed to sell the five-year paper with a 0.8 to 1.6 per cent coupon.
The bond was expected to be priced on or around Thursday.
The proceeds will be used to refinance or fund Link’s existing and future eligible green projects, such as those that improve energy efficiency, control pollution, and manage water and waste.
“Sustainability is an integral part of Link’s business model … we are delighted to work with like-minded investors to promote and improve corporate sustainability performance as well as build thriving, low-carbon communities,” said George Hongchoy, chief executive of Link Asset Management.