LOANLYPLANET A Refinitiv LPC publication | Covering Green, Sustainable and Positive Incentive Lending Globally | December 2019

European disclosure rules to force material sustainability risks into investment GREENSHOOTS decision-making,” said Vanessa Havard-Williams, LARGEST 10 DEALS to date private debt funds to address ESG global head of environment at Linklaters. “Since – by Prudence Ho that kind of risk should normally be considered Issuer |Deal Size| Market European private debt fund managers are whether or not your fund has an ESG focus, this 1. Carrefour | €3.9bn| France facing pressure to address environmental, social is not something managers can readily discount 2. SNCF | €3.5bn| France and governance issues as they get swept up in as irrelevant to their funds.” 3. E.ON AG | €3.5bn| Germany new and far-reaching disclosure regulations laid Additional disclosure requirements will apply out by the European Parliament on sustainable to funds that are marketed as sustainable in- 4. Prologis | US$3.5bn| US investments. vestments or as having environmental or social 5. TenneT TSO BV | €3.0bn| Netherlands Earlier this year, the European Parliament set objectives. Fund managers will be obligated to 6. Beatrice Offshore |£2.54bn| UK out rules that will require most asset managers, disclose the sustainability objectives and infor- 7. Suez Environ SA | €2.5bn| France including private fund managers, to disclose how mation on the methodologies used to assess their sustainability issues affect the value of their impact or characteristics, Havard-Williams said. 8. HCP Inc. | US$2.75bn| US investments. The rules aren’t expected to be introduced 9. Solvay | €2.0bn| Belgium Private debt fund managers may struggle to until the first quarter of 2021, and implemen- 10. Carnival Corp | US$2.4bn| US adopt this regulation as direct lending has been tation may be delayed if the guidelines aren’t slow to embrace ESG due to its opaque nature finalised in time. and a lack of pressure from investors to ‘go green’. FAST FACTS WEAK TRANSPARENCY “I don’t think they have yet given it a huge Nearly US$113bn in global green and While fund managers still have at least a year amount of thought,” said a partner at a law firm sustainability-linked loan volume has been to prepare for the new rules, a major stumbling who works extensively with private debt funds. block is likely to be the lack of ESG transparency announced this year. “And they have to face it now.” for small privately-owned businesses. Most private debt funds do not have an ESG “The reality of the situation is a company with BNP will no longer provide policy, and some invest in industries that are 100 employees, and they are unlikely to report financing to companies in the thermal coal not seen as environmentally-friendly. Under the their carbon footprint,” said Archie Beeching, new rules, fund managers will be unable to hide sector anywhere in the world by 2040. The director of responsible investment at Muzinich will eliminate its exposure to thermal those investments. “Fund managers are expected to give informa- coal among the European Union member (STORY cont’d on p. 2) tion on their ESG policies, and how they integrate states by 2030 and has set a financing target of €18bn in support of the development of renewable energies by Nearly US$113bn in global green and ESG loan 2021. volume announced YTD 2019 Japanese shipping firm, Nippon Yusen

KK, signed a ¥50bn five-year sustainability $100 80% 77% linked loan at the end of November, $90 marking the first such loan issued in Japan. 70% $80 60% Over €2.6bn in ESG-linked $70 Schuldscheins have come to market so far 50% $60 this year amid strong investor support. $50 40%

$40

ESG & Green Loans 30% Source: Refinitiv LPC

Now available in Dealscan. $30 Pro rata Share (% ) 20% 1. Search Market Segments under Tranche $20 13% 9% 10% 2. Select ESG, Green Loan, or both $10 1% 3. Add them to your list of criteria $0 0%

Regional Green & ESG−linked volume (US$bn) EMEA Americas APAC Japan Contact us for more information: Volume Pro rata share Americas: [email protected] EMEA: [email protected] Pacific: [email protected] A Refinitiv LPC Publication © 2019 Any copying, redistribution (including electronic forwarding) or republication of Refinitiv LPC and Refinitiv publications, or their content is strictly prohibited. For more info email @ [email protected]. COVER STORY Cornerstones of Sustainability/ESG-Linked Loans IN THE NEWS

Johnson goes sustainable Multinational building systems group Johnson Controls International plc has tied the pricing of US$3bn of its senior revolving credit facilities (RCFs) to employee safety and greenhouse gas (GHG) emissions, becoming one of the first industrial companies to link RCFs to specific sustainability metrics in the US market. The sustainability-linked facilities include a US$2.5bn five-year RCF and a US$500m 364- day RCF. The five-year facility replaces an existing US$2bn RCF that was due to mature in August 2020. The 364-day facility includes a one-year term out . The financing pays a margin and facility fee linked to ratings (see LoanConnector.) Margins and facility fees can be further ad- justed, up or down by up to 4.5bp and 0.75bp, respectively on an annual basis, depending on Johnson Controls’ performance on metrics Source: The Loan Syndications and Trading Association, Loan Market Association, aligned to employee safety, the reduction of GHG and Asia Pacific Loan Market Association emissions from energy efficiency and renewable energy customer projects and reductions in GHG emissions from internal operations. (STORY cont’d from p. 1) Employee safety is based on the Total Record- which recently announced its first close of a “If you are the only investor to ask difficult ques- able Incident Rate (TRIR) measured as the number European private debt fund with an ESG focus. tions, companies may look for another offer,” said of incidents per 200,000 workhours according European lower mid-market private debt lender Beeching, who is also an ESG committee member to the reporting rules of the US Department of Kartesia echoed the view. of the European Leveraged Finance Association. Labor - Occupational Safety and Health Admin- “ESG information and reporting from small Streamlining questions that investors frequent- istration Severe Injury Reports. mid-market companies is limited,“ said Coralie ly ask relating to ESG is one of the options that Adjustments are based on a TRIR threshold of De Maesschalck, head of portfolio and ESG at the ELFA is considering to assist direct lenders. 10% over an increasing target level up to 2025. Kartesia. “While with primary deals we can “It’s a challenge for SMEs to respond to 100 For reported TRIR above the 10% threshold the still manage to get access to management and different ESG questions from 100 different margin would increase by 1.5bp and the facility increased reporting on ESG, it will be more chal- investors.” said Beeching. “We need a balance fee increases by 0.25bp, for reported TRIR less lenging with our secondary debt investments.” between having a template and avoiding a than or equal to the TRIR threshold, but higher To increase their influence, direct lenders need box-ticking exercise.” than the TRIR target there is a 0.0bp adjustment; to unite in order to persuade middle market bor- and for reported TRIR of less than or equal the rowers to increase their adoption of ESG issues. TRIR target the margin fee decreases by 1.5bp and the facility fee increases by 0.25bp. Similarly, adjustments on GHG intensity and GHG savings are also based on thresholds of 10% France, Spain and U.K. dominate green and ESG lending over pre-set target levels up to 2025. Other 13% For reported GHG intensity above the 10% France 18% threshold the margin increases by 1.5bp and the facility fee increases by 0.25bp, for reported GHG Australia 3% intensity of less than or equal to the threshold, but higher than the target level there is a 0.0bp Belgium 3% adjustment; and for reported GHG intensity of Finland 3% less than or equal to the target the margin de- creases by 1.5bp and the facility fee decreases 4% by 0.25bp. Spain 14% For reported GHG savings less than the 10%

Source: Refinitiv LPC threshold, the margin increase by 1.5bp and the Italy 5% facility fee increases by 0.25bp, for reported GHG savings greater or equal to the threshold, but less than the target level there is a 0.0bp adjustment; Hong Kong 5% and for reported GHG savings of greater than United Kingdom 11% or equal to the target the margin decreases by Netherlands 6% 1.5bp and the facility fee decreases by 0.25bp. “Our products and services empower our cus- Germany 6% United States(7%) tomers and communities to consume less energy and conserve resources; that is why I am proud

(NEWS cont’d on p. 4)

LOANLYPLANET © | Page 2 GREEN LENDING ATLAS France: Air Liquide has amended its UK: Co-operave Group exisng €2bn RC, linking pricing Germany: Connental AG has agreed has agreed a £400m to its corporate social responsibility targets. sustainability-linked RC. to a €4bn RC with interest linked to the company’s sustainability performance.

Russia: Metalloinvest has agreed to a €200m pre-export sustainability-linked financing with a club of seven .

Hong Kong: US: Johnson Controls Langham Hospitality raised a debut HK$7.5bn (US$958m) ed the pricing of sustainability-linked loan from eleven lenders. US$3bn of its senior Spain: Cementos Japan: Nippon Yusen signed a ¥50bn (US$457m) RCFs to employee Molins has agreed commitment line, marking Japan's first safety and greenhouse to a €180m loan, sustainability-linked loan. gas emissions. the first company in the Spanish cement sector Singapore: Hoi Hup Realty to sign a sustainable loan. has obtained a S$332.5m (US$244.2m) green loan to part its acquision of luxury hotel Andaz Singapore.

Global: BNP Paribas will stop financing the thermal coal sector worldwide by 2040 LEAGUE TABLES YTD’19 Global Green & ESG-linked Global Top Tier Lender League Table (by Deal Count)

Total Volume Market Rank Lender Parent Deals (m)(USD) Share 1 BNP Paribas SA 60 6,064.69 6.3% 2 ING Group 49 4,710.42 5.3% 3 SA 38 4,148.91 4.9% 3 HSBC Banking Group 38 3,890.63 4.8% 5 Credit Agricole Corp & Invest Bank SA 36 3,796.73 4.9% 6 Societe Generale SA 34 3,539.55 4.8% 7 Banco Bilbao Vizcaya Argentaria SA [BBVA] 28 3,244.89 4.7% 8 Citi 24 3,239.73 4.9% 9 23 2,335.52 3.7% 9 Ltd 23 1,332.54 2.2%

Source: Refinitiv LPC YTD’19 Global Green & ESG-linked All Participant Level League Table (by Deal count)

Total Volume Market Rank Lender Parent Deals (m)(USD) Share 1 BNP Paribas SA 64 63,569.11 4.9% 2 ING Group 53 48,377.73 3.8% 3 HSBC Banking Group 42 46,440.16 3.6% 4 Banco Santander SA 39 42,914.37 3.3% 5 Credit Agricole Corp & Invest Bank SA 38 48,310.44 3.8% 6 Societe Generale SA 36 44,278.51 3.4% 7 Banco Bilbao Vizcaya Argentaria SA [BBVA] 32 31,921.27 2.5% 8 Citi 27 38,513.57 3.0% 8 Barclays 27 35,846.43 2.8% 8 Mitsubishi UFJ Financial Group Inc 27 28,065.91 2.2% Source: Refinitiv LPC

LOANLYPLANET © | Page 3 ESG Coldplay, Pearl Jam, lenders incorporate ESG criteria.

2019: 58 2018: 52 2019: 211 2018: 143

2019: 104 2019: 47 2018: 100 2018: 24

Numbers: Deal by year, region Line: Coldplay’s 2016-2017 World Tour ight path

2019: 3 2018: 1

Source: Refinitiv LPC, Wikipedia

In November, Coldplay announced it was pausing future tours until it finds a way to make them more environmentally sustainable. This is not a small move. The band’s last tour for its “A Head Full of Dreams” album generated over US$500m. It follows on the heels of Pearl Jam, which has been involved in sus- tainability efforts since 2006 and most recently mitigated 3,500 tons of CO2 emissions from their 2018 European and US tours via an investment project in Alaska in partnership with ClimeCo. They offset an additional 2,500 tons produced from their 2018 Brazilian tour dates by investing in a reforestation effort by Amazonia Live in partnership with Conservation International. What does any of this have to do with the loan market? Quite a bit. At over US$113bn green and sustainability linked loan volume is not only setting records but establishing a baseline for expansion. An additional US$162bn has come through the bond market, up 32% compared to the same time last year. None of this has arguably come without a cost to lenders, issuers and, of course, rock stars. Lenders are providing incentivized pricing based on issuers meeting stated ESG goals. Issuers are investing in sustainability linked oversight measures. Market attention is growing. Nearly €2.6bn in new CLO issue out of is ESG compliant or restricted and in November, Nomura launched the Nomura BPI SDGs Bond Perfor- mance Index composed of 105 publicly listed green and sustainability linked bonds issued since September 2016. Perhaps he wasn’t talking about the planet, but Chris Martin’s lyrics ring a bell: “And I will try to fix you.” IN THE NEWS (NEWS cont’d from p. 2) this industry-leading commitment tied to our line have raised difficult questions about whether the done in the private loan market, which means of credit demonstrates that sustainability is at the targets being set are ambitious enough. that the KPIs have been buried and not clearly heart of our vision and values,” George Oliver, French industrial gas manufacturer Air Liquide, defined or subject to public scrutiny. chairman and CEO of Johnson Controls, said. Spanish cement group Cementos Molins and Many of the KPIs on early sustainability-linked A total of 18 banks committed to the facilities, three German companies - car parts maker Conti- loans are viewed as ineffective and even unfit which were led by joint lead arrangers and joint nental, chemicals group Lanxess and engineering for purpose. bookrunners were JP Morgan, Bank of America, group Norma - have all tapped the loan market Banks are gaining expertise as the market Barclays Bank and . for sustainability-linked loans. evolves and matures, but setting KPIs is still ING Bank was sustainability structuring agent. While the extension of sustainable financing hampered by a lack of standardisation around MUFG Bank, Credit Agricole CIB, , to carbon-intensive companies is controversial, the approaches and data used. Bank, TD Bank, , US many see it as essential to cutting emissions and “The KPIs we see in the market today are Bank, , BBVA, Bank of New York Mellon, meeting the goal of the Agreement to limit not as impactful as they could be, but they are , ICBC and Westpac also participated. global warming to 1.5 degrees. meaningful because we’re at the beginning of the Ireland-domiciled Johnson Controls is listed in “Transactions in high carbon-intense sectors journey of making a sophisticated model to price New York and rated BBB+ by S&P, Baa2 by Moody’s should be considered transition deals,” said sustainability and therefore assets,” Allen said. and BBB by Fitch. – AR Trevor Allen, a sustainability research analyst Banks subsidise sustainability-linked loans by at BNP Paribas. “We want brown companies giving companies discounts for hitting targets. to acknowledge that they’ve got to shift to a low-carbon strategy.” AMBITION REWARDED? Brown companies step up for sustainability loans A handful of bonds linked to the UN’s Sustain- Continental acknowledged that current KPIs/ Five companies from Europe’s heavy industrial able Development Goals have printed this year benchmarks vary greatly. It said that it is com- sector have signed a combined €7.5bn of sustain- (most notably from Italian power company Enel), mitted to becoming more sustainable - and that ability-linked loans in recent days, but the deals but most sustainability-linked financing has been (NEWS cont’d on p. 5) LOANLYPLANET © | Page 4 IN THE NEWS (NEWS cont’d from p. 4) the KPIs on its loan reflected that - but drew a Starting immediately, co-heads Agnes Gourc arranged the financing which was fully contrast with other sustainable loans that do and Cecile Moitry will lead the team, which will placed and executed on the VC Trade digital SSD nothing more than maintain the status quo. be focused on the EMEA market and be based platform. The car parts maker has committed to sourc- in , Paris and Lisbon. The green SSD is supplemented with classic ing more renewable electricity, increasing the The move reflects the sustained business and Namensschuldverschreibungen with maturities proportion of women in management positions, revenue growth that the team has seen in 2019 of up to 30 years. reducing the accident and sickness rate among as the profile and volume of sustainable financ- “The upcoming investment by municipal and its employees, and increasing the proportion of ing continues to rise and companies accelerate public housing companies in creating affordable recycled waste. their progress towards the UN’s Sustainable housing and housing refurbishment of the hous- Lanxess, meanwhile, committed to one envi- Development Goals. ing stock necessary for climate policy is optimally ronmental KPI and one social KPI - to increase The team is part of ambitious wider sustain- suited for green and social Schuldschein financ- the proportion of women in its top three man- ability transformation plans and corporate so- ing,” Andreas Petrie, head of primary markets at agement levels. It currently has no women on cial responsibility policies for the bank’s global Helaba, said. – AR its board. arm, that are also designed to streamline its operations. MATERIAL TARGETS “Sustainable finance is at the core of BNP ESG specialists insist that green structuring Paribas strategy, and the bank has integrated agents are getting more sophisticated in setting sustainability across its business lines,” said Con- Lanxess signs €1bn sustainable RC targets that are material to companies’ business stance Chalchat, head of company engagement German specialty chemicals group Lanxess and strategy, and are increasingly raising the bar at BNP Paribas CIB. has signed a €1bn revolving credit facility (RCF) for unambitious companies. The focus on sustainability in the wider banking with a margin linked to environment, social and “It is the responsibility of the structuring adviser industry is continuing apace as banks ramp up governance (ESG) criteria. to make sure that this is not too easy a task,” said their ESG credentials. The core RCF, which replaces Lanxess’ existing Orith Azoulay, global head of green and sustain- Barclays launched a sustainable and impact €1.25bn RCF which was due to mature in May able finance at . “Banks are lowering the banking group in November to find and invest in 2023, has a five-year maturity with two one-year margin and there’s a price for it - and that price companies at the forefront of the battle against extension options. is ambition.” climate change and Citigroup created a new role “We have used the good envi- to lead environmental, social and governance ronment and our solid investment grade rating to EASILY MEASURED issues in its markets arm. secure Lanxess’ long-term financing on attractive The most common and easily measured KPI in BNPP’s move towards a multi-product origi- terms,” Michael Pontzen, Lanxess’ CFO, said. the ESG world centres around CO2 emissions, nation approach and away from single product Margins are linked, among other things, to which can be verified by the Greenhouse Gas specialism will also help to coordinate deal the successful reduction of its Scope 1 (direct Protocol and organisations such as CDP, the execution and structuring. emissions from owned or controlled sources) carbon disclosure project. But even here the The bank has a leading position in sustainabili- greenhouse gas emissions; and an increase range of strategies relating to CO2 measurement ty-linked loans, and is top of Refinitiv LPC’s global in the proportion of women on the top three highlights differences in approach. green and ESG-linked loan league tables, with management levels. Air Liquide has a KPI to reduce carbon intensity, 64 deals totalling US$63.6bn this year, and was ‘We are convinced that sustainable criteria are calculated as direct and indirect kilogram-equiv- also a joint bookrunner for Italian utility Enel’s also becoming increasingly important for the alent CO2 emissions. Cementos Molins has first sustainability-linked bonds in September. capital markets,” Pontzen said. also committed to reducing CO2 emissions, but The bank is a member of the Principles for “We have therefore developed this innovative already uses the reduction of CO2 emissions per Responsible Banking and has also committed financing concept together with our banking tonne of cement to determine its managers’ pay. to align with the Paris Agreement to finance partners. With the ‘sustainable’ revolving credit Lanxess has committed to reducing its Scope a low-carbon economy through the Collective facility, we are also underlining our commitment 1 emissions, which are all direct emissions that Commitment to Climate Action. to achieving our ambitious climate targets.” are under its control. Lanxess has set its own It also recently announced its commitment to In November, the company said that it will go CO2 reduction targets, which will be verified by protect the oceans (SDG 14, life below water) by climate neutral and eliminate its greenhouse gas an independent auditor. putting €1bn by 2025 to finance the ecological emissions of currently around 3.2 million metric Science-based target-setting is seen as critical transition of vessels. – TW tons of CO2 by 2040. to maintain the integrity of sustainability-linked Deutsche Bank and UniCredit coordinated the financing. Some 732 companies are taking RCF with a syndicate of 12 banks. science-based climate action and 312 compa- Lanxess is rated BBB by S&P and Baa2 by nies have approved targets, according to the Moody’s. – AR Science-Based Targets initiative. NHW places green Schuldschein “Banks assess risk; if they know the metric, they German housing, construction and develop- can assess the risk and look for opportunities in ment group Nassauische Heimstaette I Wohn- markets. If we’re going to align to 1.5 degrees, stadt (NHW) has placed a total of €180m of green scientists need to set the targets and goals with Schuldscheindarlehen (SDD) and longer-dated Muzinich closes fund banks,” Allen said. – TW Namensschuldverschreibungen. Muzinich has announced the first closure of The financing includes a green SSD of €80m, its European Senior Secured Private Debt Fund which closed with a multiple oversubscription, at €104m. and comprises maturities of 10, 15 and 20 years. The fund will invest in euro-denominated se- NHW will use the financing to modernize its nior secured first-lien loans for European SMEs, BNP creates new team housing stock. Under the green financing, NHW excluding the UK, and will target sponsor-backed BNP Paribas is creating a sustainable finance has to prove that it is using the funds to promote as well as corporate borrowers. markets team to help companies incorporate sustainable projects. Target yield is 4% above Euribor and ticket sustainability into their debt financing, in a The company has an agreement with majority sizes range between €10m and €25m, the direct move that will combine the bank’s bond and owner, the state of Hesse, to make its housing lender said. loan sustainability teams. stock climate neutral by 2050. (NEWS cont’d on p. 6) LOANLYPLANET © | Page 5 IN THE NEWS (NEWS cont’d from p. 5) Langham completes loan Metalloinvest signs €200m PXF “Senior secured debt instruments offer in- Langham Hospitality Investments Ltd, the hotel Russian iron ore company Metalloinvest has vestors a lower-risk approach to private debt assets spinoff of Hong Kong developer Great agreed a €200m 6.5-year pre-export financing investing. These instruments tend to have Eagle Holdings Ltd, has raised a debut HK$7.5bn with a club of seven banks. statistically higher recovery rates, possess su- (US$958m) sustainability-linked loan from eleven Metalloinvest intends to convert the new PXF, perior documents and provide strong covenant lenders, sources said. which was coordinated by ING, into a sustain- protection,” Sandrine Richard, co-head of senior HSBC was the coordinator of the four-year ability-linked facility. Societe Generale was also secured Europe said in a statement. facility, which offered an all-in pricing below part of the bank group. The fund implements environmental, social and 100bp based on an initial interest margin of “This loan has the longest maturity for the governance considerations and monitoring into 83bp over Hibor. pre-export financing ever attracted by the compa- its investment process, according to the lender. The other banks that have joined HSBC as ny from international banks. Further, the parties “Muzinich has been a signatory to the PRI since mandated lead arranger are: Agricultural Bank intend to link the loan pricing to the sustainable 2010 and is applying experience gained from of China Hong Kong branch, Bank of China (Hong development indicators,” said Alexey Voronov, integrating ESG considerations into the public Kong), Bank of Communications Hong Kong, finance director of Metalloinvest. debt investment process to our latest private debt China Construction Bank, Chong Hing Bank, Hang Metalloinvest wanted the deal done quickly, strategy,” Archie Beeching, director of responsible Seng Bank, Industrial and Commercial Bank of so there was not time to agree the sustain- investment at Muzinich said. – KK China, , OCBC Bank and Sumitomo ability-linked details in advance of signing, one Mitsui Banking Corp. banker said. LHIL Finance Ltd is the borrower of the deal, “Pricing in Russia is turning against borrowers which comprises a HK$6.8bn term loan (tranche at the moment so Metalloinvest wanted to get A) and HK$700m revolving credit facility (tranche the deal done fast,” he said. “We will now work Continental goes sustainable B). together on a sustainability-linked covenant German automotive supplier Continental AG The margin will reduce by 1bp for each of three and add it to the facility eventually, but it is not has agreed a €4bn five-year revolving credit sustainability key performance indicators the happening immediately.” facility (RCF) with interest linked to concrete borrower fulfils, including energy consumption, The loan, which has a grace period of 5.5 years improvements in the company’s sustainability wastes sent to landfills, and EarthCheck achieve- and semi-annual amortisation, will be used to performance. ment level. The interest margin will step up by improve Metalloinvest’s maturity profile, diver- The facility refinances an existing €3bn RCF that 8bp if the borrower’s Ebitda to financial charge sify its foreign currency liabilities and reduce its was due to mature in April 2021 on improved ratio falls below 2x. borrowing costs. terms. LHIL’s three portfolio hotels in Hong Kong – The interest rate of the loan is fixed for the Continental has become the first German au- The Langham, Cordis and Eaton – will serve as entire loan period. tomotive company to include specially defined security for the loan. In April, Metalloinvest signed a US$100m loan sustainability indicators in its credit agreement Proceeds raised will refinance of a HK$7.2bn with a margin linked to the company’s corporate with its core banks. four-year loan from March 2016, and general social responsibility rating. The financing was The margin on the facility will decrease or corporate purposes. provided by ING and matures in November 2020. increase depending on whether Continental Citigroup and HSBC were the mandated lead The CSR rating is assessed and assigned by improves its sustainability performance based arrangers, bookrunners and underwriters, while independent sustainability performance rating on criteria including securing electricity exter- China Construction Bank Asia was the MLA and agency EcoVadis. EcoVadis awarded Metalloin- nally from renewable sources; increasing the underwriter of the 2016 facility. vest a debut CSR rating of ‘Silver’ in 2018. proportion of women in management positions; The financing, which paid a top level all-in of The company was last in the market for a PXF reducing the accident rate and sick rate; and less than 120bp based on a margin of 98bp over in January 2018, when it signed a US$240m increasing the proportion of recycled waste. Hibor, attracted 14 others in general syndication. four-year PXF with a group of eight banks. – SB “This year, the executive board adopted our (March 18 2016 story) – CW updated sustainability strategy. By combining sustainability improvements with our new credit line, we have found an innovative way in corpo- rate finance to further advance Continental’s Hoi Hup Realty raises Green loan sustainability strategy,” Stefan Scholz, head of Cementos Molins agrees loan Singapore property developer Hoi Hup Re- finance & treasury at Continental, said. Spanish cement group Cementos Molins has alty Pte Ltd has obtained a maiden S$332.5m Continental said that similar credit lines with agreed a €180m five-year sustainability-linked (US$244.2m) green loan to part finance its sustainability components in the market were loan, the first company in the Spanish cement acquisition of luxury hotel Andaz Singapore, only aimed at achieving or maintaining selected sector to sign a sustainable loan. according to a press release. sustainability ratings. Since the benchmarks of The financing comprises a €40m term loan and Maybank, OCBC Bank and United Overseas current ratings vary greatly, the company was a €140m revolving credit facility. Bank provided the loan, which closed as a club. committed to achieving specific improvements Margins are linked specifically to the company’s OCBC acted as sole Green loan advisor. in sustainability performance as part of the new performance on the reduction of CO2 emissions. In October M+S Pte Ltd, a joint venture between credit facility. The company already uses the reduction of Malaysian sovereign wealth fund Khazanah Nasi- The facility helps support the company’s CO2 emissions per ton of cement as one of the onal Bhd and Singapore state investor Temasek global sustainability goals, which are tied to key indicators for its sustainability barometer, an Holdings Pte Ltd, announced that it will sell Andaz the Sustainable Development Goals (SDGs) of evaluation mechanism determining the variable Singapore to Hoi Hup Realty for S$475m. the United Nations and to the Paris Agreement, remuneration of its managers. This financing was issued under Hoi Hup Realty’s among others. The loan was coordinated by CaixaBank, with green loan framework, which was developed for The RCF is being provided by a syndicate of 27 , BBVA, Banco Santander and HSBC the acquisition of Andaz Singapore in accordance banks led by BNP Paribas and Deutsche Bank. also participating. CaixaBank is also facility agent. with the Green Loan Principles issued in 2018 by BNP Paribas is sustainability adviser. Cementos Molins manufactures, distributes the Loan Market Association and the Asia-Pacific Continental is rated BBB+ by S&P and Fitch. – AR and sells cement, concrete, mortars, aggregates Loan Market Association. and concrete prefabricates. The company is active The developer’s subsidiary, Ophir-Rochor Hotel, in Spain, Argentina, Uruguay, Mexico, Bolivia, is the borrower. Green loans have picked up mo- Columbia, Bangladesh and Tunisia. – AR mentum in Singapore as part of the city state’s ambitions to be a hub for green finance. – MJ LOANLYPLANET © | Page 6 To sign up for Refinitiv LPC’s LOANLYPLANET contact Americas: [email protected] EMEA: [email protected] Asia Pacific: [email protected]

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