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WBCSD Communications
Hong Kong, 30 November: New World Development Company Limited (NWD) and DBS Hong Kong (DBS) have completed Hong Kong’s first-ever interest rate swap linked to the United Nations Sustainable Development Goals (UNSDGs), thereby taking a significant step on the journey to sustainability. This derivative transaction is designed to provide a hedge against the interest rate risk related to NWD’s 5-year HK$1 billion sustainability-linked loan from DBS, which closed in November 2019.
Under this innovative solution, NWD is eligible to receive sponsorship from DBS to support social innovation projects, if they successfully generate at least eight business-to-business integration opportunities that contribute to the UNSDGs adopted by the New World Sustainability Vision 2030. NWD’s social innovation initiatives include Impact Kommons, a UNSDGs-focused startup accelerator and business-integration program, of which DBS is a social impact partner.
Adrian Cheng, Executive Vice-Chairman and Chief Executive Officer of New World Development, said: “New World Group is committed to connecting business success with social progress and environmental solutions by promoting the United Nations Sustainable Development Goals. We also believe in the power of partnerships to accelerate change, and that is why we have enlisted the support of DBS. With the winning combination of our resources and their expertise in financial innovation, we are joining forces to create shared value for the long-term well-being of society.”
Alex Cheung, Managing Director and Head of the Institutional Banking Group of DBS Hong Kong, said: “At DBS, we believe we have a role to play in promoting sustainable development. This ground-breaking transaction demonstrates true leadership in accelerating climate action, and reaffirms our commitment to work with NWD and other like-minded partners to build a sustainable future through innovation and collaboration.”
The UNSDGs are a call for action to address a range of social needs, including education, health, social protection and job opportunities, while at the same time tackling climate change and environmental protection. The UNSDGs have been adopted by NWD to standardise its overall sustainability approach across its portfolio of businesses, including practices in property development and management, and to establish energy and carbon-related targets. Both NWD and DBS are also signatories to the United Nations Global Compact and are committed to driving progress towards the UNSDGs in ways that are meaningful to their businesses. For DBS, this includes acting on climate change by partnering with like-minded clients, like NWD, in adopting agreed practices for responsible financing.
More information available here