HSBC Funds SUNeVision's HK$3B Sustainability Loan

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by KnowESG
KnowESG_SUNeVision sustainability linked loan
Image courtesy of Freepik

SUNeVision Holdings, the leading data centre provider and connectivity hub in Hong Kong, is delighted to announce the signing of an agreement with HSBC for its inaugural sustainability-linked loan (SLL) facilities totalling HK$3 billion.

This milestone loan underscores SUNeVision's ongoing dedication to sustainability and its commitment to Environmental, Social, and Governance (ESG) performance.

The 35-month term SLL comprises two facilities: a HK$2 billion term loan and a HK$1 billion revolving credit facility. As the first of its kind in the Hong Kong data centre sector, it solidifies SUNeVision's commitment to sustainable development while pursuing long-term growth.

The SLL facilities have been thoughtfully structured with tiered pricing, incentivising the achievement of sustainability objectives. SUNeVision stands to benefit from interest rate savings upon reaching predetermined targets that address significant ESG issues.

These targets encompass improvements in power usage effectiveness, overall coefficient of performance (COP), and the attainment of green building certifications. The loan proceeds will be used for general corporate funding purposes, driving the company's long-term sustainability performance.

Raymond Tong, Chief Executive Officer and Executive Director of SUNeVision expressed his enthusiasm, stating, "Securing our first sustainability-linked loan from HSBC is a tremendous accomplishment. This loan signifies our ambition to explore innovative ways of financing and operating a more sustainable business. It further solidifies our unwavering commitment to long-term business continuity and sustainable development as we continuously enhance environmental performance in existing data centres while incorporating sustainable design elements into future projects."

Matthew Hung, Managing Director and Head of Corporate Coverage, Global Banking Hong Kong, HSBC, commented, "SUNeVision's debut SLL, the first of its kind for data centre providers in Hong Kong, demonstrates how the industry can leverage sustainable practices to enhance energy efficiency in operations. We will continue to leverage our extensive expertise in corporate and sustainable finance to support our clients in realising their sustainability aspirations."

The SLL follows the globally recognised Sustainability Linked Loan Principles, developed by the Loan Market Association, the Asia Pacific Loan Market Association, and the Loan Syndications and Trading Association, ensuring a robust framework for the loan structure.

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Source: SUNeVision

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