New World Development has become the first real estate developer to launch a 10-year US$200 million sustainability-linked bond, using the funds to help it achieve full use of renewable energy for rental properties in Greater Bay Area by 2026.
The proceeds of the bond will be allocated to New World’s long-term sustainability initiatives, as well as general corporate purposes, the company said in a statement.
If New World does not meet its target of 100 per cent renewable energy on the designated rental properties by 2026, then the company will buy carbon offsets.
“Businesses must take timely action to combat climate change,” said Adrian Cheng, executive vice-chairman and chief executive of New World. “We look forward to more real estate players taking bold but necessary steps to create shared value with all stakeholders and protect the environment.”