80 Environmental, Social and Governance Report 2023 PILLAR 3: CORPORATE PERFORMANCE Responsible Investment ACCELERATING OUR SUSTAINABLE FINANCING EFFORTS The Group continues to integrate sustainability considerations into its financing mechanisms. As at end-2023, the Group announced it has secured approximately US$4 billion across a total of seven Sustainability-Linked Loans (“SLLs”), demonstrating its leadership in green finance and business practices. The seventh loan, amounting to HK$1.6 billion over a 5-year tenure, incorporates a tiered incentive mechanism which entitles ESR to interest rate reductions when its sustainability goals are achieved. The Group will refinance current borrowings and use the proceeds for investments, working capital and other general corporate reasons. In addition to the SLLs, the Group closed Hong Kong’s first-ever HK$8.8 billion Green Loan for the development of a logistics centre. The HK$8.8 billion Green Loan is one of the biggest in Hong Kong in 2023 and it will be used to finance the construction of Kwai Chung Cold Storage Logistics Centre, Hong Kong’s largest cold storage facility ever to be built in the last 20 years. As of the date of publication of this report, the Group has raised in total 10 SLLs with a cumulative total amount of US$4.4 billion approximately. CASE STUDY Signing ceremony for sustainability-linked loan for ESR HK1 Data Centre
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