Slaughter and May, Hong Kong, advised Oversea-Chinese Banking Corporation Limited (OCBC) on its HK$1.3 billion/CNH1.15 billion sustainability-linked dual-currency fixed rate loan facility (SLL) to a wholly-owned subsidiary of Shangri-La Asia Limited (Shangri-La). The SLL is the first of its kind for the hospitality industry in Hong Kong.
The SLL is directly tethered to Shangri-La’s Environmental, Social and Governance (ESG) targets which address material ESG issues in the hospitality industry, including energy and water usage efficiency, decarbonisation, and waste reduction. The SLL incorporates fee reductions linked to sustainability performance targets which will allow the borrower to benefit from savings in borrowing costs based on Shangri-La’s annual achievements of these targets as verified by an external and independent assessor.
OCBC has been consistently ranked among the World’s Top 50 Safest Banks by Global Finance and is now the second largest financial services group in Southeast Asia by assets. Shangri-La is one of the world’s premier developers, owners and managers of hotel and investment properties which comprise office buildings, commercial real estate and serviced apartments/residences.
OCBC’s media release on the SLL: English version | Chinese version