First-Ever ESG-Linked Syndicated Loan Facility in Asia Pacific Launched
Kerry Logistics Network Limited (‘Kerry Logistics Network’, ‘KLN’; Stock Code 0636.HK) and a syndicate solely led by MUFG Bank Ltd. (‘MUFG’) have signed a five-year HK$1 billion syndicated Sustainability-linked & Social Term Loan Facility (‘Facility’). This Facility is a first-of-its-kind ESG-linked syndicated loan structure in the Asia Pacific, validating KLN’s pioneer position in the logistics sector and commitment to Environment, Social and Governance (‘ESG’).
MUFG acted as the sole Mandated Lead Arranger, Bookrunner and Underwriter and Sustainability & Social Loan Structuring Advisor in the Facility. The oversubscribed transaction showcases MUFG’s unparalleled syndication arrangement and ESG structuring capabilities, while leveraging its deep relationship network to broaden the investor base for clients.
The Facility was tailored with a cutting-edge ESG structure comprising both sustainability-linked loan and social loan tranches. Under the terms of the Facility, KLN is to invest in social initiatives to generate positive impact to the communities it serves across Hong Kong and the Mainland of China. Other social targets include a list of eligible social projects providing access to employment, essential services and affordable basic infrastructure.
Ellis Cheng, Executive Director and Chief Financial Officer of Kerry Logistics Network, said, “The overwhelming subscription result demonstrates the banking industry’s trust in the impact of KLN’s social contributions. KLN appreciates MUFG’s leadership in spearheading the company’s inaugural syndication and the bespoke ESG structure is a testament of KLN’s commitment to create a greener, safer and better-connected world.”
Cerlin Ip, MUFG’s Head of Global Corporate Banking, Hong Kong, said, “We are honoured to continue deepening our partnership with KLN. This landmark sustainability-linked and social syndicated loan facility has further demonstrated KLN’s pioneering position in the logistics sector and deep commitment to sustainability, while reaffirming MUFG’s efforts in partnering clients to pursue their environmental and business agendas. We look forward to deepening our collaboration with KLN in their journey to a sustainable future.”
