Hong Kong-based ESR Group Limited has announced the completion of its HK$4-billion ($509.6 million) sustainability-linked loan, with a possibility to upsize it to HK$7 billion ($891.8 million), according to an announcement on Monday.
The five-year unsecured facility, with a Hong Kong Interbank Offered Rate (HIBOR) at 1.8% plus, has a tiered incentive mechanism where ESR will be entitled to an interest reduction should the firm achieve its sustainability target. The proceeds will be leveraged on the firm’s refinancing of existing borrowings, investments, working capital and general corporate purposes, according to the announcement.
