Shui On Land Issues Inaugural Green Bond

Shui On Land Limited (“Shui On Land” or the “Company”, Stock Code: 272) announced today that the Company, through its wholly owned subsidiary, Shui On Development (Holding) Limited, has successfully entered into an agreement for the issuance of its inaugural 4NC2 5.75% Green senior notes due November 2023 in an aggregate principal amount of US$300 million (the “Green Bond”).

Shui On Land Issues Inaugural Green Bond

As a socially responsible property developer, Shui On Land has always firmly believed that sustainability is key to the long-term development of both the enterprise and the society. In its listing year in 2006, Shui On Land announced its Sustainable Development Policy and formed the Sustainable Development Committee to integrate sustainability principles into the policy-making process. The Committee is directly led by senior management from cross-departments and projects, and regularly analyses, promotes and tracks Shui On Land’s sustainability performance.

Over the years, the Committee has implemented a series of sustainability measures, extending the sustainability criteria into the planning, construction and operation of the Company’s projects. In 2019, the Company appointed Sustainalytics as an independent third party to endorse the Company’s Green Finance Framework in accordance to the International Capital Markets Association (ICMA) Green Bond Principles 2018.

The proceeds from the issuance of the Green Bond will be used exclusively for the financing or the refinancing, in whole or in part, of projects funded by Shui On Land that promote sustainable development in the real estate industry. Eligible projects under the Green Finance Framework include:

• Green buildings – New commercial projects and existing commercial projects which require construction, renovation or refurbishment and furnished residential projects owned and managed by Shui On Land to achieve LEED or China Green Building Label certification

• Energy efficiency – Investments aiming to encourage and facilitate the adoption of new
technologies and the upgrade of mechanical equipment for the purpose of reducing the energy consumption in operation, which includes, but is not limited to investment into LED lighting and “Better Control” system

• Pollution prevention and control – Investments aiming to develop indoor PM 2.5 treatment,
recycling and resources conservation, which includes, but is not limited to installation of efficient PM 2.5 filters into air-conditioning system

Shui On Land Issues Inaugural Green Bond

Shui On Land will monitor the allocation of proceeds raised under the Green Finance Framework through internal information systems. Going forward, Shui On Land will also report on its allocation of proceeds in its annual report.

Today’s Green Bond issuance further solidifies the Company’s commitment towards building dynamic communities that integrate the sustainable development philosophy of green and health into various stages of strategic planning, product development and daily operation and management. As of June 30, 2019, the Company had 1.6 million sq.m. of green certified commercial buildings under its portfolio. Six projects, including Shanghai Taipingqiao, Shanghai RHXC, Shanghai KIC, Wuhan Tiandi, Foshan Lingnan Tiandi and Chongqing Tiandi, had achieved LEED Neighbourhood Development stage-2 Gold level certification, a globally recognised international certification that demonstrates the standard and sustainability of the Company’s projects.

Standard Chartered Bank and UBS AG Hong Kong Branch acted as the Joint Global Coordinators, Joint Bookrunners and Joint Lead Managers in the offer and sale of the Green Bond. UBS AG Hong Kong Branch also acted as Sole Green Advisor in the transaction.

(Source: Shui On Land)