VVisionTobeaworldclassrealestateinvestorandmanager,servingandimprovingthelivesofthosearoundus
MMissionBuilding relationshipswithourstakeholders through
• Providing valueandqualityservice• Partneringwithlocalcommunities• Deliveringsustainablegrowth
VValuesManagingandoperatingourbusinesswithRespect� Excellence� Integrity� Teamwork
It started with a clear vision.....
CorporateSocialResponsibility(CSR)
.
SustainabilityFramework . IntegratedValue
CreationModel
Environmental,SocialandGovernance
(ESG)
IntegratedReporting(IR)
2009 2011 2017
2013
Itisajourney…
In order for a project to be funded through the green bond proceeds, the project must meet one or more of the following eligibility criteria:
1. Existing or new buildings that expect to receive certification
2. Energy efficiency
3. Projects such as those that reduce waste to landfill, improve water efficiency, promote adoption of low carbon transportation including electric vehicles, and improve climate change resilience
P.10
Link Green Bond Framework
In order for a project to be funded through the green bond proceeds, the project must meet one or more of the following eligibility criteria:
1. Existing or new buildings that expect to receive certificationa) Hong Kong BEAM - Silver, Gold or Platinum; or b) LEED Silver, Gold or Platinum
2. Energy efficiencya) 15% improvement in energy efficiency or, a NABERS Shopping Centres rating
equal to or greater than 3 or similar rating scheme to an equivalent rating level
3. Projects such as those that reduce waste to landfill, improve water efficiency, promote adoption of low carbon transportation including electric vehicles, and improve climate change resilience
P.12
Link’s Green Bond Framework - Expanded
SummaryofTermsandConditions
Asia- 96%
Europe- 4%
ISSUER TheLinkFinance (Cayman)2009Limited
GUARANTOR
TheLinkHoldings Limited,LinkPropertiesLimitedandHSBCInstitutionalTrustServices(Asia)Limited(initscapacityastrusteeofLinkRealEstateInvestmentTrust)
GUARANTORRATINGS A(S&P)stable/A2(Moody's) stable
ISSUERATINGS A(S&P)/A2(Moody’s)
STATUS Senior,Unsecured, DrawdownfromMTNProgramme
FORMAT Reg S,RegisteredTENOR 10-YearMATURITYDATE 21July 2026ISSUESIZE USD500mCOUPON 2.875%s/aREOFFERSPREAD 145bps vs10-year USTyieldsREOFFERPRICE/YIELD 99.123/2.977%
USEOFPROCEEDS Torefinanceorfund eligiblegreenprojects
TERMS HKSEListing, EnglishLaw
FundManager- 42%Bank- 45%PrivateBank- 7%Insurance- 5%Other- 1%
Distribution by Investor Type
US$500m 10-year green bond at 2.875% coupon
DarkGreen- 6%
LightGreen- 14%
Others- 80%
DarkGreen: Investorshavededicatedgreenfundswithinthefundhouse
LightGreen: InvestorshaveESGinvestmentapproachandisactiveingreenbonds.
Distribution by Geography
Distribution by Green Investors
P.13
P.14
Highlights of Link’s Green Bond
• Identify eligible green projects
• Set up “green bond framework” conforming to Green Bond Principles with second opinion accreditation
• Investor roadshows and conference calls in Frankfurt, Paris, London, Singapore and HK with focus on green investors
• After bond issue, tracking and reporting of eligible green projects and use of proceeds
Processes
• First green bond issued by HK business enterprise and in Asian property sector
• Attracted 3.3x oversubscription with 20% green investors
• Achieved one of the lowest coupons at 2.875% for a 10-year HK corporate bond
• Leadership in sustainability and contribution to the green financing of HK
Achievements
• QuantifyingLinkREIT’sTotalImpact– Goingbeyondthetraditionalfinancialmetrics,wecommissionedTrucost toconducta
TIA(TotalImpactAssessment)measuringLink’snatural,socialandhumancapital
• Firstkick-offinDecember2015• Intendtodeveloparobust managementtoolwithin3years
– Tohaveacomprehensiveunderstandingonthebusinessrelevanceofitssustainabilityprogrammes
– Toinformandimproveourbusinessdecision-making– Tosupport Link’sESGinvestortargetingstrategywithbettercommunicationwiththe
investmentcommunity
NaturalCapital
•Electricityandwaterconsumption, wastegeneration
•GHGEmission andsocialcostofcarbon
SocialCapital
• LinkTogetherInitiatives•Marketingeventsandactivities
HumanCapital
•Healthandsafetytraining• Learninganddevelopment
15
Reporting on our Green Bond
• Conducted2pilotcasesonspecificprojectstoassessTotalImpact:
16
ValuationofLink’sAEProject:LokFuCaseStudy
• Every$1investedinLokFuAEgenerated$4.1-$6.7insocio-economicbenefits
UsedKPMGmethodologytoassessfinancialvalueofbenefitssuchasjobscreated,changesincustomerspendingandsatisfaction,andimprovementinenvironmentalperformance.
Quantifyingsocial/communityvalues:LinkTogetherInitiatives
• Every$1investedWGO’sSurplusFoodDonationProjectgenerated$1.59ofsocio-environmentalbenefits
UsedTIAtoassessfinancialvaluesofbenefitssuchasavoidedfoodwastetolandfill,strengthenedsocialnetworkamongintraandinter-generations
Quantifying our Total Impact
Development§ Built between 1983 and 1991 by government
§ Renovated in 2010/11
Project features
§ Electricity consumption reduced by ~30%
§ Retrofitted energy efficient chillers with environmental friendly refrigerant R134a
§ Improved lighting systems, replacing T8 lightings by T5 fluorescent tubes
§ Promote low carbon transportation
§ Awarded Indoor Air Quality Certificates (“Good Class”) for Public Areas of Lok Fu Plaza Phase I and Dry Market
First Link property to undergo renovation work with a focus on environmental performance
Lok Fu Place
Development§ Built between 1999 and 2000 by government
§ Renovated in 2011/12
Project features
§ Passive Design Approach
§ All-embracing considerations from neighborhood to building interiors
§ Outdoor Environmental Qualities (OEQ)
§ Indoor Environmental Qualities (IEQ)
§ Energy and water conservation
§ Materials conservation in a life cycle perspective
§ Sustainability policy and feedback loop
First HK-BEAM Platinum certified propertyPassive design capitalizing on its waterfront location
Stanley Plaza
Development§ Built in 1983
§ Renovation in progress
Project features
§ 8-storey retail podium and 15-storey tower block of service trades
§ Innovations and Additions§ Smartphone App§ Hong Kong Guide Dog Accessible and
Training provided§ Adopt sustainable flooring, ceiling, walls and
doors where possible.
§ Focus on indoor Environmental Quality
§ Targeting IAQ “Good Class” Certificate
Targeting BEAM - Plus Interiors CertificationLandmark commercial building in the heard of Kowloon
700 Nathan Road
Development§ Built in 2003
§ Renovated in 2016
Project features
§ Replacing air filters to enhance air quality
§ Introducing waste separation and educating tenants about eco-friendly practices
§ Extensive tenant and occupier engagement to raise awareness and seek feedback
§ Revamping of the green areas to highlight the main entrance
§ Upgrading of the standby power generator system
LEED EB-OM Platinum CertificationHighest-scoring mixed-use commercial complex in China
Link Square
Development § Grade-A office with retail element and car park
Project features§ Twin towers with connected floors of about
50,000 sq ft floor plate and a three-level retail podium
Expected Completion Date § 2019
Estimated Total Development Costs
§ HK$9.9 Billion
JV Structure§ Link Asset Management Ltd – 60%
§ Nan Fung Development Ltd – 40%
LEED and HK-BEAM Platinum precertificationWELL Gold precertificationDesign, build and hold for long-term income growth
77 Hoi Bun Road