Hong Kong’s Swire Properties to raise US$500 million in maiden green bond issue
Priced at 3.5 per cent, the 10-year bond also obtained the first ‘green finance certification’ issued by the Hong Kong Quality Assurance Agency
Swire Properties has priced its first green bond, a 10-year US$500 million issue, at 3.5 per cent and said that it would use part of the proceeds to finance the One Taikoo Place office tower currently under construction.
The bond, due in 2028, will be issued under Swire’s US$4 billion medium term note programme, and is expected to be rated A2 by Moody’s, and A by Fitch. It has also obtained the first “green finance certification” issued by the Hong Kong Quality Assurance Agency (HKQAA).
One Taikoo Place is a core component of the group’s HK$15 billion (US$1.9 billion) redevelopment project of Taikoo Place, which is an office community on Hong Kong Island’s Eastern District comprising eight existing grade A office properties.
“The green bond will be listed on the Hong Kong stock exchange on January 11 after the bond settlement,” said a spokesman from Swire Properties.
Guy Bradley, Swire Properties’ chief executive, said in a statement that the HKQAA certification underlines the company’s support to the Hong Kong government’s effort to develop the city’s green capital market.
