New World Development (NWD) and DBS Hong Kong have completed Hong Kong’s first-ever interest rate swap linked to the United Nations Sustainable Development Goals (UNSDGs). The derivative transaction is designed to provide a hedge against the interest rate risk related to NWD’s five-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. The property developer’s social innovation initiatives include Impact Kommons, a UNSDGs-focused start-up accelerator and business-integration programme, of which DBS is a social impact partner.
The UNSDGs seek 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. According to NWD, it has adopted the UNSDGs to standardize its overall sustainability approach across its portfolio of businesses, including property development and management, and to establish energy and carbon-related targets.
Both NWD and DBS are signatories to the United Nations Global Compact, which seeks to encourage businesses worldwide to adopt sustainable and socially responsible policies, and to report on their implementation.