BOCHK grants $625.5m sustainable loan to Shangri-La Asia
Shangri-La will receive interest rate reductions when ESG targets are achieved.
Bank of China (Hong Kong) (BOCHK) has signed a five-year sustainability-linked loan of $625.5m (RMB4.5b) with Shangri-La Asia.
This is reportedly the single largest SLL denominated in RMB for Shangri-La, BOCHK said in a press release.
Shangri-La plans to use the capital for refinancing and general working capital particularly to support its sustainable development.
The facility is linked to a set of predetermined Environmental, Social, and Governance (ESG) targets, namely employee work injury rate, energy consumption intensity, carbon emissions intensity, water consumption intensity, and the reduction of single-use plastics intensity.
The interest rate will be reduced when the preset ESG targets are achieved.
This facility included both the USD and HKD drawdown options.