NWD becomes first to price a USD Sustainability-Linked Bond

By Georgia Wilson
New World Development Company Ltd. becomes the first real estate developer in the world to price a USD Sustainability-Linked Bond (SLB...

In an announcement made by New World Development Company Ltd. (NWD), the company has become the first real estate developer in the world to price a USD Sustainability-Linked Bond (SLB). 

NWD reported that the SLB oversubscribed by 6 times at its peak, with participation from international ESG investors (~80%) including fund managers, asset managers and insurance companies across Asia and Europe. 

The 10 year US$200mn bond has a sustainability performance target that aligns with NWD’s latest ‘Renewable Energy Roadmap’ which details its commitments to achieving 100% Renewable Energy for NWD’s Greater Bay Area rental properties by the end of 2025/26.

Banks involved in the transaction included J.P. Morgan and UBS, as Joint Global Coordinators, Joint Bookrunners and Joint Structuring Agents.

"Businesses must take timely action to combat climate change. NWD will contribute to a cleaner future for the next generations as we expand in the Greater Bay Area (GBA) of China. We are excited to announce the world's first USD Sustainability-Linked Bond by a real estate developer and our target to achieve 100% renewable energy for GBA rental properties. We look forward to more real estate players taking bold but necessary steps to create shared value with all stakeholders and protect the environment,” commented Adrian Cheng, Executive Vice-Chairman and Chief Executive Officer of NWD. 

"Business-as-usual carbon reduction is no longer enough to address climate risks. In addition to the green targets set out in New World Sustainability Vision 2030, we will align to global best practices by adopting renewable energy in our building operations and protecting our communities from climate change impacts. This transaction reinforces NWD's leadership in ESG integration and sustainable finance and supports renewable energy market development,” added Ellie Tang, Head of Sustainability of NWD.

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