DBS Bank ( Hong Kong ) and Hong Kong rail operator and property developer MTR Corporation successfully closed late last year a HK$1 billion ( US$128.4 million ) five-year sustainability-linked loan ( SLL ), whose financing structure reinforces MTR’s realization of its decarbonization targets and commitments to sustainability stewardship.

This facility is the first SLL in Hong Kong’s public transportation sector with Science Based Targets initiative ( SBTi )-approved decarbonization targets. In accordance with market best practice, DBS Hong Kong was the first bank to assist MTR in securing a positive second-party opinion from a rating agency to provide investors with assurance that the SBTi and the determination of the sustainability performance targets under the SLL are appropriate.

MTR, it notes, has firmly integrated environmental, social and governance considerations into its business operations, striving to create long-term value for all stakeholders. This collaboration, both entities say, reflects their shared commitments to sustainable finance and supporting Hong Kong’s journey to carbon neutrality.

“This SLL not only reinforces our dedication in promoting sustainable finance, but also empowers MTR to further its decarbonization objectives,” shares Boris Chan, the bank’s managing director and head of institutional banking group.

Michael Fitzgerald, MTR’s finance director, adds: “This SLL will help drive our efforts to reduce carbon emissions across our rail network and property portfolio. By incorporating green and climate-resilient measures into our operations and services, we aim to provide low-carbon transportation that benefits both our stakeholders and the environment.”