Sustainable Finance

New World Development Launches First USD Social and Green Dual Tranche Bond

Published on: 13 June 2022 09:03 AM

New World Development Company has announced that it has become the first corporate in the world to issue a USD-denominated social and green dual-tranche issuance in the public bond markets as part of its continuous commitment to the New World Sustainability Vision 2030 and ESG integration.

NWD became the first non-financial corporation in Asia to offer a USD-denominated Social bond in the public bond markets and the first corporate in Greater China to issue a USD-denominated Green perpetual bond in the public bond markets with this transaction.

At their peak, the 5-year USD200 million Social bond (coupon rate: 5.875 per cent), priced at T+290 basis points, and the USD500 million Green perpetual bond (coupon rate: 6.15 per cent) were nearly five times oversubscribed, with over 100 quality investors on each tranche, including renowned fund managers, asset managers, and private banks. 

The bonds were issued in Hong Kong under the Group's Sustainable Finance Framework, which was recently updated to reflect current international requirements and best practices. Sustainalytics, an independent global provider of ESG and corporate governance research and ratings to investors, gave the framework a good Second-Party Opinion.

Edward Lau, Chief Financial Officer of NWDsaid:

"We are delighted to be the first corporate in the world to issue a USD-denominated social and green dual-tranche offering in the public bond markets. The growth of social bonds is reflecting a diversification of sustainability objectives financed by investors. Corporations and financial institutions will become more active in the social bond market as the pandemic accelerates private issuers' interest in social considerations. And, while the recent surge may have been precipitated by Covid-19, the appeal of social bonds as a sustainable finance instrument may endure long after its effects have subsided."

The Group will maintain its commitment to creating sustainable cities and communities through the Green everlasting bond. 

In 2018, NWD secured Hong Kong's first green loan and continued to actively leverage and innovate sustainable financing to drive regional growth. 

Last year, the Company became the first real estate developer in the world to price a USD-denominated Sustainability-Linked Bond with a Sustainability Performance Target aligned to the Company's "Renewable Energy Roadmap," which will aid the Company's efforts to decarbonise under the 1.5°C scenario outlined in the Paris Climate Agreement.

Source: Hubbis

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