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.