New World China Land to issue its first green bond

This inaugural green bond will fund two certified environmental projects in the GBA, which will receive national and international green building design pre-certifications

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New World China Land Limited (NWC), the flagship mainland China property arm of New World Development Company Limited (NWD), is to issue its first green bond to finance two certified environmental projects in the Greater Bay Area (GBA).

The green bond is one of the tranches of the medium-term note (MTN) programme, which is being issued in Hong Kong under the New World Group's Green Finance Framework. The MTN programme of up to US$2 billion gives institutional investors the opportunity to participate in China's real estate sector and support its green growth with a major integrated property developer in China.

It is becoming increasingly recognized by experts in environmental circles that the Chinese government has made green development a priority to address the nation's environmental challenges. Regulators are actively encouraging the use of green bonds to finance such projects. Globally, green real estate bonds are increasingly being seen as a way for institutional investors to diversify their holdings and take advantage of the sector's longer investment cycles while meeting rising client demand for socially responsible investing.

Adrian Cheng, executive vice-chairman and general manager of NWD, says: "NWD is pleased to support green financing in line with China's goal to build an 'ecological civilization' and Hong Kong's growth as a green finance hub. We have both financial strength and mature green building experience. Driven by the 'New World Sustainability Vision 2030' to infuse green and wellness elements into our businesses, we are confident that we can continue to deliver quality for our customers and create value for our stakeholders through this new bond issue."

NWC is principally engaged in property development in tier 1 and 2 cities in the mainland China, with particular strengths in large-scale mixed-used complexes, skyscrapers and residential neighbourhood projects. It currently has projects spanning 17 major cities in China, including Beijing, Guangzhou, Shenzhen, Wuhan and Ningbo.

"As one of the leading integrated property developers in China, NWC is known for incorporating sustainable design principals into its property developments to provide healthy, high-quality built environments for China's citizens," says So Chung-Keung, director and chief executive officer of NWC. "With a confident eye on China's green future, we will continue to make strategic investments that reflect our attention to sustainability and to those who live and work in the properties we create."

This first green bond issue, which has already received the 'Pre-Issuance Stage Certificate' under the Hong Kong Quality Assurance Agency's Green Finance Certification Scheme, will be financing two NWC projects in the GBA. Both projects will receive national and international green building design pre-certifications and pledge to incorporate green spaces and energy-saving design and materials.

The NWC bond, with New World Development as its guarantor, has HSBC, Mizuho Securities, DBS, Natixis, BNP Paribas and Credit Agricole CIB as joint global coordinators. HSBC and Natixis are the joint green structuring advisors.

Date

22 Nov 2018

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