ESR Group Limited (“ESR” or the “Company”, together with its subsidiaries as the “Group”; SEHK Stock Code: 1821), APAC’s largest real asset manager powered by the New Economy, announced today the closing of an approximately HK$4 billion Sustainability-Linked Loan (“SLL”) with an option to upsize it to HK$7 billion. 

This is the fifth SLL the ESR Group has closed within the past 12 months, reinforcing the Group’s leadership in sustainable financing and operations.  To date, it has closed a total of approximately US$3 billion in SLLs as it continues to integrate ESG into its financial management, operations and future planning.

In support of ESR’s efforts to further strengthen its Environmental, Social and Governance (“ESG”) commitments, the Hongkong and Shanghai Banking Corporation Limited (Singapore Branch) (“HSBC”), Mizuho Bank, LTD (“Mizuho”) and MUFG Bank, LTD (“MUFG”) acted as Sustainability Advisors, Mandated Lead Arrangers and Bookrunners.

The five-year unsecured, committed facility, at Hibor + 1.8%, has a tiered incentive mechanism where ESR will be entitled to an interest reduction when the Group’s sustainability targets are achieved.  The proceeds will be used to fund the Group’s refinancing of existing borrowings, investments, working capital and general corporate purposes.

Jeffrey Perlman, Chairman of ESR, said: “As the leading real asset manager and largest New Economy real estate platform in APAC, ESR is committed to integrating sustainability into every facet of our business. I am proud of the great strides ESR continues to make as we seek to deliver on our ESG 2025 Roadmap, including sustainable financing, green building certifications, increasing its renewable energy generation, the promotion of diversity and inclusion and  broader community engagement. ESR is now a signatory to the United Nations-supported Principles for Responsible Investment (“UNPRI”), reinforcing the Group’s commitment to adopting and promoting responsible investment practices. We will continue to accelerate best-in-class ESG practices to achieve positive social and environmental impact while creating sustainable value for our stakeholders.”

Jeffrey Shen and Stuart Gibson, Co-founders and Co-CEOs of ESR, said: “We thank HSBC, Mizuho and MUFG for their support of ESR’s commitment to responsible growth. Our latest SLL underpins our ESG efforts, marking yet another step towards our sustainability and financial goals. ESR remains focused on striving to not only enhance the performance of our assets and operations, but also to lead and set the standard for the sustainable development of our industry.”

ESR is committed to leveraging its strengths and resources to constantly enhance its ESG performance to create long-term value for stakeholders. ESR has retained its MSCI ESG Rating of “A”, in recognition of its outstanding performance in ESG best practices and Sustainalytics  - a global leader in ESG research, ratings, and data has placed ESR in the “Low Risk” category of experiencing material financial impacts from ESG factors.