DBS Bank and Henderson Land have closed a HK$5 billion ( US$644.43 million ) bilateral multi-tranche sustainability-linked loan ( SLL ) and social loan.

The financing supports the Hong Kong property developer's general funding needs in line with its sustainability and social initiatives. The facility comprises a four-year SLL amounting to HK$2 billion, a five-year SLL of HK$2.9 billion, and a social loan of HK$100 million.

In a collaborative effort, DBS Hong Kong and Henderson Land worked closely to design a customized set of sustainability performance targets tailored to the property group’s current environmental, social and governance ( ESG ) landscape and its 2030 sustainability vision.

Proceeds from the social loan will be used for eligible projects, including “transitional housing” and “community living room”. Both parties aim to foster ongoing commitments to responsible investment and community well-being.

“This significant financing agreement with DBS Hong Kong reinforces our commitment to sustainability and social responsibility, including reducing construction site accidents, while advancing our goals of sustained growth,” says Andrew Fung, executive director and chief financial officer of Henderson Land.

“We remain dedicated to strategies that prioritize environmental stewardship, innovation for future, community care and social value. We look forward to seeing the positive impact this facility will have on the local community.”

Boris Chan, managing director and head of institutional banking group at DBS Hong Kong, notes that the bank has “long-term commitments in driving social developments and promoting sustainable economy”.

In addition to the Henderson Land deal, the bank has also been involved in numerous sustainable financing solutions tailored for companies across different sectors, and also in leading various community projects.