In a noteworthy move demonstrating its dedication to sustainable business practices and growth, HKBN has successfully secured a HK$5.25 billion Sustainability-Linked Loan (SLL Facility) from 11 prominent international, regional, and local banks. This financial milestone underscores HKBN’s commitment to achieving specified sustainability performance targets (SPTs) related to climate change mitigation and cybersecurity enhancements. The framework for the loan features an interest rate adjustment mechanism that ties directly into these sustainability goals, offering reduced borrowing costs as incentives for meeting the outlined key performance indicators (KPIs).
The robust support for HKBN’s SLL Facility from the market reflects strong confidence in the company’s business strategy and commitment to sustainability. This initiative is particularly significant as it merges corporate financing with environmental and social goals, creating a structure that promotes responsible business practices. The first key performance indicator focuses on reducing greenhouse gas emissions under Scopes 1 and 2, with targets aligned with the Science-Based Targets initiative (SBTi). The second KPI is centered on improving cybersecurity by reducing the average failure rate in phishing assessments among employees. The third KPI addresses reducing Scope 3 emissions, thereby ensuring a holistic approach to minimizing environmental impact.
In partnership with Sustainable Fitch, HKBN received a Second Party Opinion (SPO) on its Sustainability-Linked Financing Framework, securing an overall rating of “Good.” This rating aligns the framework with international standards, including the Sustainability-Linked Loan Principles set by the Loan Market Association. The facility was coordinated by a consortium of financial institutions, including Bank of China (Hong Kong), BNP Paribas, Cathay United Bank, Crédit Agricole Corporate and Investment Bank, DBS Bank, ING Bank, and The Bank of East Asia, among others who participated as lead arrangers and bookrunners.
Statements from key representatives of HKBN and its financial partners highlight the importance of this initiative. Derek Yue, HKBN’s Chief Financial Officer, remarked that the loan not only improves financial terms for HKBN but also sets a new benchmark for corporate accountability and sustainability. He emphasized the firm’s unwavering commitment to addressing climate change and bolstering cybersecurity, critical components of a sustainable and secure future. Representatives from Crédit Agricole and ING also expressed their support and pride in backing HKBN’s mission, noting the crucial alignment between financial strategies and sustainability objectives.
This landmark SLL Facility by HKBN represents a significant trend in the industry where companies are increasingly incorporating environmental and social objectives into their financial strategies. By doing so, they reflect a broader commitment to sustainability while ensuring continuous business growth. HKBN’s initiative serves as a benchmark in the telecommunications sector, promoting responsible business practices and fostering long-term positive impacts, underscoring the potential of integrating sustainability into the core of corporate operations.
