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Fortune REIT obtains sustainability-linked loan of HK$1.5 billion from OCBC Bank

Fortune REIT obtains sustainability-linked loan of HK$1.5 billion from OCBC Bank

  • 15 Jul 2021

ARA Asset Management (Fortune) Limited (“the Manager”), the manager of Fortune Real Estate Investment Trust (“Fortune REIT”; SEHK: 778) announced today that Fortune REIT has secured a 5-year sustainability-linked loan worth HK$1.5 billion from OCBC Bank, which is the sole lender and sustainability advisor for the facility. The facility is the latest sustainable financing for Fortune REIT, reinforcing the REIT’s ongoing commitment in integrating sustainability into its operations.

The loan will be used to refinance Fortune REIT’s existing club facility and for general corporate funding purpose. The interest margins of the loan facility will tie to a set of predetermined environmental, social and governance (ESG) targets, including reduction in electricity consumption, greenhouse gas emissions and waste reduction in general of its properties. The annual performance of these ESG metrics will be assessed by an external independent party, where Fortune REIT will be entitled to interest rate savings for the loan when the predetermined ESG targets are achieved.

Ms Justina Chiu, Chief Executive Officer of the Manager, said, “This is Fortune REIT’s second green financing initiatives, which has more than doubled our sustainability-linked loan facilities to an aggregate of HK$2.5 billion now. These sustainability-linked credit facilities reflect the depth of our commitment to advancing Fortune REIT’s ESG goals. By tying our environmental metrics to our financial performance, we aim to achieve positive sustainable impact in our business while showing our support in the development of sustainable capital markets in Hong Kong.”

Mr Tan Wing Ming, Regional General Manager for North East Asia of OCBC Bank, said, “We are delighted to partner sustainability-minded companies such as Fortune REIT that are leveraging sustainable finance and incorporating sustainable practices into their operations. Combating climate change is only possible through such partnerships, and we will continue to work hard with our stakeholders to proactively encourage more sustainable transactions.”

Sustainable financing is a key tenet of OCBC Bank’s strategy. Having achieved its original sustainable finance portfolio target of $10 billion in the first quarter of 2020 – two years ahead of schedule – the bank has set a new ambitious target of $25 billion by 2025.

Fortune REIT is managed by ARA Asset Management (Fortune) Limited and is a constituent of the Hang Seng Corporate Sustainability Index.

Fortune REIT and OCBC Bank signed a HK$1.5 billion sustainability-linked loan. Ms Justina Chiu, Chief Executive Officer of ARA Asset Management (Fortune) Limited, and Mr Rox K.C. Lam, Deputy General Manager of OCBC Bank Hong Kong Branch, commemorated the green financing partnership by visiting Fortune City One and viewing the newly installed solar panels.


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