New World Development Announces Green Finance Framework and Successful Raising of First Green Loan, Green Loan to fund Hong Kong commercial re-development project

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New World Development Announces Green Finance Framework and Successful Raising of First Green Loan, Green Loan to fund Hong Kong commercial re-development project

New World Development Company Limited (the "Group", Hong Kong stock code: 00017) is pleased to announce its Green Finance Framework (the “Framework”), which was developed to guide the funding of sustainable building development and enhancements through green bonds or loans. The Framework covers the Group and its entities including New World China Land Limited and K11 Group Limited. This initiative echoes the “New World Sustainability Vision 2030”, which aims to enrich the “artisanal living” culture through environmental protection, promotion of healthy living, technology adoption and caring for all community stakeholders.

Under the Framework, the Group has already successfully raised its first green loan, which will be used for a green commercial re-development project at King’s Road, North Point, Hong Kong. Targeting for completion in 2019, the project has achieved the world’s first WELL Building Standard Pre-certification (Platinum), as well as BEAM Plus New Building Version 1.2 (Provisional Platinum) and LEED Building Design and Construction Core and Shell Version 2009 Pre-certification (Platinum).

“The King’s Road project will set the benchmark for future sustainable buildings. In addition to green designs, we actively consider how our built environment could promote the wellbeing of building users. We are excited to support green financing alongside the Hong Kong SAR and mainland China Governments by launching the Framework and securing our first green loan for this innovative project,” said Adrian Cheng, Executive Vice-chairman and General Manager of New World Development.

Guided by the Framework, green bonds or loans would fund projects that meet the eligibility criteria set under green buildings, energy efficiency and renewable energy, water management, waste management and climate change adaptation. The Hongkong and Shanghai Banking Corporation was the Group’s Green Finance Advisor.

“We are delighted to have advised New World Development on the establishment of their Green Finance Framework, and to have supported their inaugural green loan transaction,” said Peter Wong, Deputy Chairman and Chief Executive, The Hongkong and Shanghai Banking Corporation.

The Group is committed to transparently reporting the environmental impacts of each transaction under the Framework, such as final assessment results of green and healthy building certifications, energy consumption reduction, etc. Sustainalytics, an independent global environmental, social and governance research, analysis and rating provider, has confirmed the Framework was aligned with Green Bond Principles 2017 and contained robust criteria to guide future green loans. The King’s Road Commercial Re-development Project Green Loan has received a Green Finance Certificate (pre-issuance) from the Hong Kong Quality Assurance Agency (HKQAA).

As of 2017, 93% of the total gross floor area of the Group’s ongoing Hong Kong development projects has been awarded BEAM Plus certification, and more than 1 million square metres of the Group’s Mainland China projects’ floor space have received LEED Gold or Platinum Certification or Pre-certification. Building energy efficiency measures, such as a real-time energy monitoring system, also resulted in a 5% reduction in energy consumption in 2017 alone.

“It is our dream to bring products and services with ‘green’, ‘wellness’, ‘smart’ and ‘caring’ characteristics to individual customers through ’New World Sustainability Vision 2030’. We look forward to funding more impactful projects in Greater China through green bonds and loans,” Mr. Cheng added.

 

New World Development Company Limited

Founded in 1970, New World Development Company Limited (“the Group”, Hong Kong stock code: 0017) was publicly listed in Hong Kong in 1972 and is a constituent stock of the Hong Kong Hang Seng Index. A premium brand infused with a unique personality defined by The Artisanal Movement, New World Group’s core business areas include property development, property investment, infrastructure and services, department stores and hotels. As at 31 December 2017, the total asset value of the Group amounted to HK$468.1 billion. The Group has an effective interest of approximately 61% in NWS Holdings Limited (Hong Kong stock code: 0659), approximately 75% in New World Department Store China Limited (Hong Kong stock code: 0825) and wholly owned in New World China Land Limited.