LOANLYPLANET
A Refinitiv LPC publication | Covering Green, Sustainable and Positive Incentive Lending Globally | December 2019
GREENSHOOTS
LARGEST 10 DEALS to date
Issuer |Deal Size| Market
1. Carrefour | €3.9bn| France
2. SNCF | €3.5bn| France
3. E.ON AG | €3.5bn| Germany
4. Prologis | US$3.5bn| US
5. TenneT TSO BV | €3.0bn| Netherlands
6. Beatrice Offshore |£2.54bn| UK
7. Suez Environ SA | €2.5bn| France
8. HCP Inc. | US$2.75bn| US
9. Solvay | €2.0bn| Belgium
10. Carnival Corp | US$2.4bn| US
FAST FACTS
Nearly US$113bn in global green and
sustainability-linked loan volume has been
announced this year.
BNP Paribas will no longer provide
financing to companies in the thermal coal
sector anywhere in the world by 2040. The
bank will eliminate its exposure to thermal
coal among the European Union member
states by 2030 and has set a financing
target of €18bn in support of the
development of renewable energies by
2021.
Japanese shipping firm, Nippon Yusen
KK, signed a ¥50bn five-year sustainability
linked loan at the end of November,
marking the first such loan issued in Japan.
Over €2.6bn in ESG-linked
Schuldscheins have come to market so far
this year amid strong investor support.
ESG & Green Loans
Now available in Dealscan.
1. Search Market Segments under Tranche
2. Select ESG, Green Loan, or both
3. Add them to your list of criteria
Contact us for more information:
Americas: lpc.americas@refinitiv.com
EMEA: lpc.europe@refinitiv.com
Asia Pacific: lpc.asiapacific@refinitiv.com
A Refinitiv LPC Publication © 2019 Any copying, redistribution (including electronic forwarding) or republication of Refinitiv LPC and Refinitiv
publications, or their content is strictly prohibited. For more info email @ lpc.americas@refinitiv.com.
European disclosure rules to force
private debt funds to address ESG
– by Prudence Ho
European private debt fund managers are
facing pressure to address environmental, social
and governance issues as they get swept up in
new and far-reaching disclosure regulations laid
out by the European Parliament on sustainable
investments.
Earlier this year, the European Parliament set
out rules that will require most asset managers,
including private fund managers, to disclose how
sustainability issues affect the value of their
investments.
Private debt fund managers may struggle to
adopt this regulation as direct lending has been
slow to embrace ESG due to its opaque nature
and a lack of pressure from investors to ‘go green’.
“I don’t think they have yet given it a huge
amount of thought,” said a partner at a law firm
who works extensively with private debt funds.
“And they have to face it now.”
Most private debt funds do not have an ESG
policy, and some invest in industries that are
not seen as environmentally-friendly. Under the
new rules, fund managers will be unable to hide
those investments.
“Fund managers are expected to give informa-
tion on their ESG policies, and how they integrate
Nearly US$113bn in global green and ESG loan
volume announced YTD 2019
Regional Green & ESG−linked volume (US$bn)
$100
$90
77%
$80
$70
$60
$50
$40
$30
$20
$10
$0
EMEA
material sustainability risks into investment
decision-making,” said Vanessa Havard-Williams,
global head of environment at Linklaters. “Since
that kind of risk should normally be considered
whether or not your fund has an ESG focus, this
is not something managers can readily discount
as irrelevant to their funds.”
Additional disclosure requirements will apply
to funds that are marketed as sustainable in-
vestments or as having environmental or social
objectives. Fund managers will be obligated to
disclose the sustainability objectives and infor-
mation on the methodologies used to assess their
impact or characteristics, Havard-Williams said.
The rules aren’t expected to be introduced
until the first quarter of 2021, and implemen-
tation may be delayed if the guidelines aren’t
finalised in time.
WEAK TRANSPARENCY
While fund managers still have at least a year
to prepare for the new rules, a major stumbling
block is likely to be the lack of ESG transparency
for small privately-owned businesses.
“The reality of the situation is a company with
100 employees, and they are unlikely to report
their carbon footprint,” said Archie Beeching,
director of responsible investment at Muzinich
(STORY cont’d on p. 2)
80%
70%
60%
Pro rata Share (%)
Source: Refinitiv LPC
50%
40%
30%
20%
13%
9%
10%
1%
0%
Americas APAC Japan
Volume Pro rata share
COVER STORY
Cornerstones of Sustainability/ESG-Linked Loans
Source: The Loan Syndications and Trading Association, Loan Market Association,
and Asia Pacific Loan Market Association
(STORY cont’d from p. 1)
which recently announced its first close of a
European private debt fund with an ESG focus.
European lower mid-market private debt lender
Kartesia echoed the view.
“ESG information and reporting from small
mid-market companies is limited,“ said Coralie
De Maesschalck, head of portfolio and ESG at
Kartesia. “While with primary deals we can
still manage to get access to management and
increased reporting on ESG, it will be more chal-
lenging with our secondary debt investments.”
To increase their influence, direct lenders need
to unite in order to persuade middle market bor-
rowers to increase their adoption of ESG issues.
France, Spain and U.K. dominate green and ESG lending
Other 13%
Australia 3%
Belgium 3%
Finland 3%
Singapore 4%
Italy 5%
Hong Kong 5%
Netherlands 6%
Germany 6%
“If you are the only investor to ask difficult ques-
tions, companies may look for another offer,” said
Beeching, who is also an ESG committee member
of the European Leveraged Finance Association.
Streamlining questions that investors frequent-
ly ask relating to ESG is one of the options that
the ELFA is considering to assist direct lenders.
“It’s a challenge for SMEs to respond to 100
different ESG questions from 100 different
investors.” said Beeching. “We need a balance
between having a template and avoiding a
box-ticking exercise.”
France 18%
Source: Refinitiv LPC
Spain 14%
United Kingdom 11%
United States(7%)
LOANLYPLANET © | Page 2
IN THE NEWS
Johnson goes sustainable
Multinational building systems group Johnson
Controls International plc has tied the pricing of
US$3bn of its senior revolving credit facilities
(RCFs) to employee safety and greenhouse gas
(GHG) emissions, becoming one of the first
industrial companies to link RCFs to specific
sustainability metrics in the US syndicated loan
market.
The sustainability-linked facilities include a
US$2.5bn five-year RCF and a US$500m 364-
day RCF.
The five-year facility replaces an existing
US$2bn RCF that was due to mature in August
2020. The 364-day facility includes a one-year
term out option.
The financing pays a margin and facility fee
linked to ratings (see LoanConnector.)
Margins and facility fees can be further ad-
justed, up or down by up to 4.5bp and 0.75bp,
respectively on an annual basis, depending
on Johnson Controls’ performance on metrics
aligned to employee safety, the reduction of GHG
emissions from energy efficiency and renewable
energy customer projects and reductions in GHG
emissions from internal operations.
Employee safety is based on the Total Record-
able Incident Rate (TRIR) measured as the number
of incidents per 200,000 workhours according
to the reporting rules of the US Department of
Labor - Occupational Safety and Health Admin-
istration Severe Injury Reports.
Adjustments are based on a TRIR threshold of
10% over an increasing target level up to 2025.
For reported TRIR above the 10% threshold the
margin would increase by 1.5bp and the facility
fee increases by 0.25bp, for reported TRIR less
than or equal to the TRIR threshold, but higher
than the TRIR target there is a 0.0bp adjustment;
and for reported TRIR of less than or equal the
TRIR target the margin fee decreases by 1.5bp
and the facility fee increases by 0.25bp.
Similarly, adjustments on GHG intensity and
GHG savings are also based on thresholds of 10%
over pre-set target levels up to 2025.
For reported GHG intensity above the 10%
threshold the margin increases by 1.5bp and the
facility fee increases by 0.25bp, for reported GHG
intensity of less than or equal to the threshold,
but higher than the target level there is a 0.0bp
adjustment; and for reported GHG intensity of
less than or equal to the target the margin de-
creases by 1.5bp and the facility fee decreases
by 0.25bp.
For reported GHG savings less than the 10%
threshold, the margin increase by 1.5bp and the
facility fee increases by 0.25bp, for reported GHG
savings greater or equal to the threshold, but less
than the target level there is a 0.0bp adjustment;
and for reported GHG savings of greater than
or equal to the target the margin decreases by
1.5bp and the facility fee decreases by 0.25bp.
“Our products and services empower our cus-
tomers and communities to consume less energy
and conserve resources; that is why I am proud
(NEWS cont’d on p. 4)
 GREEN LENDING ATLAS
France: Air Liquide has amended its
UK: Co-operave Group exisng €2bn RC, linking pricing
has agreed a £400m Germany: Connental AG has agreed
to its corporate social responsibility targets.
sustainability-linked RC. to a €4bn RC with interest linked to the company’s
sustainability performance.

Russia: Metalloinvest has agreed

to a €200m pre-export
sustainability-linked financing with
a club of seven banks.

Hong Kong:
US: Johnson Controls Langham Hospitality raised a debut HK$7.5bn (US$958m)
ed the pricing of sustainability-linked loan from eleven lenders.
US$3bn of its senior Spain: Cementos Japan: Nippon Yusen signed a ¥50bn (US$457m)
RCFs to employee Molins has agreed commitment line, marking Japan's first
safety and greenhouse to a €180m loan, sustainability-linked loan.
gas emissions. the first company
in the Spanish
cement sector Singapore: Hoi Hup Realty
to sign a sustainable loan. has obtained a S$332.5m (US$244.2m)
green loan to part its acquision
of luxury hotel Andaz Singapore.

Global: BNP Paribas will stop financing the thermal coal sector worldwide by 2040

LEAGUE TABLES
YTD’19 Global Green & ESG-linked Global Top Tier Lender League Table (by Deal Count)
Total Volume Market
Rank Lender Parent Deals (m)(USD) Share
1 BNP Paribas SA 60 6,064.69 6.3%
2 ING Group 49 4,710.42 5.3%
3 Banco Santander SA 38 4,148.91 4.9%
3 HSBC Banking Group 38 3,890.63 4.8%
5 Credit Agricole Corp & Invest Bank SA 36 3,796.73 4.9%
6 Societe Generale SA 34 3,539.55 4.8%
7 Banco Bilbao Vizcaya Argentaria SA [BBVA] 28 3,244.89 4.7%
8 Citi 24 3,239.73 4.9%
9 Barclays 23 2,335.52 3.7%
9 Bank of China Ltd 23 1,332.54 2.2%

Source: Refinitiv LPC

YTD’19 Global Green & ESG-linked All Participant Level League Table (by Deal count)
Total Volume Market
Rank Lender Parent Deals (m)(USD) Share
1 BNP Paribas SA 64 63,569.11 4.9%
2 ING Group 53 48,377.73 3.8%
3 HSBC Banking Group 42 46,440.16 3.6%
4 Banco Santander SA 39 42,914.37 3.3%
5 Credit Agricole Corp & Invest Bank SA 38 48,310.44 3.8%
6 Societe Generale SA 36 44,278.51 3.4%
7 Banco Bilbao Vizcaya Argentaria SA [BBVA] 32 31,921.27 2.5%
8 Citi 27 38,513.57 3.0%
8 Barclays 27 35,846.43 2.8%
8 Mitsubishi UFJ Financial Group Inc 27 28,065.91 2.2%
Source: Refinitiv LPC

LOANLYPLANET © | Page 3
ESG
Coldplay, Pearl Jam, lenders incorporate ESG criteria.

2019: 58
2018: 52 2019: 211
2018: 143

2019: 104 2019: 47

2018: 100 2018: 24

Numbers: Deal by year, region

Line: Coldplay’s 2016-2017
World Tour flight path

2019: 3
2018: 1

Source: Refinitiv LPC, Wikipedia

In November, Coldplay announced it was pausing future tours until it finds a way to make them more environmentally sustainable. This is not a small move.
The band’s last tour for its “A Head Full of Dreams” album generated over US$500m. It follows on the heels of Pearl Jam, which has been involved in sus-
tainability efforts since 2006 and most recently mitigated 3,500 tons of CO2 emissions from their 2018 European and US tours via an investment project in
Alaska in partnership with ClimeCo. They offset an additional 2,500 tons produced from their 2018 Brazilian tour dates by investing in a reforestation effort by
Amazonia Live in partnership with Conservation International. What does any of this have to do with the loan market? Quite a bit. At over US$113bn green
and sustainability linked loan volume is not only setting records but establishing a baseline for expansion. An additional US$162bn has come through the bond
market, up 32% compared to the same time last year. None of this has arguably come without a cost to lenders, issuers and, of course, rock stars. Lenders are
providing incentivized pricing based on issuers meeting stated ESG goals. Issuers are investing in sustainability linked oversight measures. Market attention is
growing. Nearly €2.6bn in new CLO issue out of Europe is ESG compliant or restricted and in November, Nomura launched the Nomura BPI SDGs Bond Perfor-
mance Index composed of 105 publicly listed green and sustainability linked bonds issued since September 2016. Perhaps he wasn’t talking about the planet,
but Chris Martin’s lyrics ring a bell: “And I will try to fix you.”

IN THE NEWS
(NEWS cont’d from p. 2)

this industry-leading commitment tied to our line
of credit demonstrates that sustainability is at the
heart of our vision and values,” George Oliver,
chairman and CEO of Johnson Controls, said.
A total of 18 banks committed to the facilities,
which were led by joint lead arrangers and joint
bookrunners were JP Morgan, Bank of America,
Barclays Bank and Citigroup.
ING Bank was sustainability structuring agent.
MUFG Bank, Credit Agricole CIB, Deutsche Bank,
Standard Chartered Bank, TD Bank, UniCredit, US
Bank, Wells Fargo, BBVA, Bank of New York Mellon,
Danske Bank, ICBC and Westpac also participated.
Ireland-domiciled Johnson Controls is listed in
New York and rated BBB+ by S&P, Baa2 by Moody’s
and BBB by Fitch. – AR
Brown companies step up for sustainability loans
Five companies from Europe’s heavy industrial
sector have signed a combined €7.5bn of sustain-
ability-linked loans in recent days, but the deals
have raised difficult questions about whether the
targets being set are ambitious enough.
French industrial gas manufacturer Air Liquide,
Spanish cement group Cementos Molins and
three German companies - car parts maker Conti-
nental, chemicals group Lanxess and engineering
group Norma - have all tapped the loan market
for sustainability-linked loans.
While the extension of sustainable financing
to carbon-intensive companies is controversial,
many see it as essential to cutting emissions and
meeting the goal of the Paris Agreement to limit
global warming to 1.5 degrees.
“Transactions in high carbon-intense sectors
should be considered transition deals,” said
Trevor Allen, a sustainability research analyst
at BNP Paribas. “We want brown companies
to acknowledge that they’ve got to shift to a
low-carbon strategy.”
A handful of bonds linked to the UN’s Sustain-
able Development Goals have printed this year
(most notably from Italian power company Enel),
but most sustainability-linked financing has been
done in the private loan market, which means
that the KPIs have been buried and not clearly
defined or subject to public scrutiny.
Many of the KPIs on early sustainability-linked
loans are viewed as ineffective and even unfit
for purpose.
Banks are gaining expertise as the market
evolves and matures, but setting KPIs is still
hampered by a lack of standardisation around
the approaches and data used.
“The KPIs we see in the market today are
not as impactful as they could be, but they are
meaningful because we’re at the beginning of the
journey of making a sophisticated model to price
sustainability and therefore assets,” Allen said.
Banks subsidise sustainability-linked loans by
giving companies discounts for hitting targets.
AMBITION REWARDED?
Continental acknowledged that current KPIs/
benchmarks vary greatly. It said that it is com-
mitted to becoming more sustainable - and that
(NEWS cont’d on p. 5)

LOANLYPLANET © | Page 4
IN THE NEWS
(NEWS cont’d from p. 4)
the KPIs on its loan reflected that - but drew a
contrast with other sustainable loans that do
nothing more than maintain the status quo.
The car parts maker has committed to sourc-
ing more renewable electricity, increasing the
proportion of women in management positions,
reducing the accident and sickness rate among
its employees, and increasing the proportion of
recycled waste.
Lanxess, meanwhile, committed to one envi-
ronmental KPI and one social KPI - to increase
the proportion of women in its top three man-
agement levels. It currently has no women on
its board.
MATERIAL TARGETS
ESG specialists insist that green structuring
agents are getting more sophisticated in setting
targets that are material to companies’ business
and strategy, and are increasingly raising the bar
for unambitious companies.
“It is the responsibility of the structuring adviser
to make sure that this is not too easy a task,” said
Orith Azoulay, global head of green and sustain-
able finance at Natixis. “Banks are lowering the
margin and there’s a price for it - and that price
is ambition.”
EASILY MEASURED
The most common and easily measured KPI in
the ESG world centres around CO2 emissions,
which can be verified by the Greenhouse Gas
Protocol and organisations such as CDP, the
carbon disclosure project. But even here the
range of strategies relating to CO2 measurement
highlights differences in approach.
Air Liquide has a KPI to reduce carbon intensity,
calculated as direct and indirect kilogram-equiv-
alent CO2 emissions. Cementos Molins has
also committed to reducing CO2 emissions, but
already uses the reduction of CO2 emissions per
tonne of cement to determine its managers’ pay.
Lanxess has committed to reducing its Scope
1 emissions, which are all direct emissions that
are under its control. Lanxess has set its own
CO2 reduction targets, which will be verified by
an independent auditor.
Science-based target-setting is seen as critical
to maintain the integrity of sustainability-linked
financing. Some 732 companies are taking
science-based climate action and 312 compa-
nies have approved targets, according to the
Science-Based Targets initiative.
“Banks assess risk; if they know the metric, they
can assess the risk and look for opportunities in
markets. If we’re going to align to 1.5 degrees,
scientists need to set the targets and goals with
banks,” Allen said. – TW
BNP creates new team
BNP Paribas is creating a sustainable finance
markets team to help companies incorporate
sustainability into their debt financing, in a
move that will combine the bank’s bond and
loan sustainability teams.
Starting immediately, co-heads Agnes Gourc
and Cecile Moitry will lead the team, which will
be focused on the EMEA market and be based
in London, Paris and Lisbon.
The move reflects the sustained business and
revenue growth that the team has seen in 2019
as the profile and volume of sustainable financ-
ing continues to rise and companies accelerate
their progress towards the UN’s Sustainable
Development Goals.
The team is part of ambitious wider sustain-
ability transformation plans and corporate so-
cial responsibility policies for the bank’s global
investment banking arm, that are also designed
to streamline its operations.
“Sustainable finance is at the core of BNP
Paribas strategy, and the bank has integrated
sustainability across its business lines,” said Con-
stance Chalchat, head of company engagement
at BNP Paribas CIB.
The focus on sustainability in the wider banking
industry is continuing apace as banks ramp up
their ESG credentials.
Barclays launched a sustainable and impact
banking group in November to find and invest in
companies at the forefront of the battle against
climate change and Citigroup created a new role
to lead environmental, social and governance
issues in its markets arm.
BNPP’s move towards a multi-product origi-
nation approach and away from single product
specialism will also help to coordinate deal
execution and structuring.
The bank has a leading position in sustainabili-
ty-linked loans, and is top of Refinitiv LPC’s global
green and ESG-linked loan league tables, with
64 deals totalling US$63.6bn this year, and was
also a joint bookrunner for Italian utility Enel’s
first sustainability-linked bonds in September.
The bank is a member of the Principles for
Responsible Banking and has also committed
to align with the Paris Agreement to finance
a low-carbon economy through the Collective
Commitment to Climate Action.
It also recently announced its commitment to
protect the oceans (SDG 14, life below water) by
putting €1bn by 2025 to finance the ecological
transition of vessels. – TW
NHW places green Schuldschein
German housing, construction and develop-
ment group Nassauische Heimstaette I Wohn-
stadt (NHW) has placed a total of €180m of green
Schuldscheindarlehen (SDD) and longer-dated
Namensschuldverschreibungen.
The financing includes a green SSD of €80m,
which closed with a multiple oversubscription,
and comprises maturities of 10, 15 and 20 years.
NHW will use the financing to modernize its
housing stock. Under the green financing, NHW
has to prove that it is using the funds to promote
sustainable projects.
The company has an agreement with majority
owner, the state of Hesse, to make its housing
stock climate neutral by 2050.
LOANLYPLANET © | Page 5
Helaba arranged the financing which was fully
placed and executed on the VC Trade digital SSD
platform.
The green SSD is supplemented with classic
Namensschuldverschreibungen with maturities
of up to 30 years.
“The upcoming investment by municipal and
public housing companies in creating affordable
housing and housing refurbishment of the hous-
ing stock necessary for climate policy is optimally
suited for green and social Schuldschein financ-
ing,” Andreas Petrie, head of primary markets at
Helaba, said. – AR
Lanxess signs €1bn sustainable RC
German specialty chemicals group Lanxess
has signed a €1bn revolving credit facility (RCF)
with a margin linked to environment, social and
governance (ESG) criteria.
The core RCF, which replaces Lanxess’ existing
€1.25bn RCF which was due to mature in May
2023, has a five-year maturity with two one-year
extension options.
“We have used the good capital market envi-
ronment and our solid investment grade rating to
secure Lanxess’ long-term financing on attractive
terms,” Michael Pontzen, Lanxess’ CFO, said.
Margins are linked, among other things, to
the successful reduction of its Scope 1 (direct
emissions from owned or controlled sources)
greenhouse gas emissions; and an increase
in the proportion of women on the top three
management levels.
‘We are convinced that sustainable criteria are
also becoming increasingly important for the
capital markets,” Pontzen said.
“We have therefore developed this innovative
financing concept together with our banking
partners. With the ‘sustainable’ revolving credit
facility, we are also underlining our commitment
to achieving our ambitious climate targets.”
In November, the company said that it will go
climate neutral and eliminate its greenhouse gas
emissions of currently around 3.2 million metric
tons of CO2 by 2040.
Deutsche Bank and UniCredit coordinated the
RCF with a syndicate of 12 banks.
Lanxess is rated BBB by S&P and Baa2 by
Moody’s. – AR
Muzinich closes fund
Muzinich has announced the first closure of
its European Senior Secured Private Debt Fund
at €104m.
The fund will invest in euro-denominated se-
nior secured first-lien loans for European SMEs,
excluding the UK, and will target sponsor-backed
as well as corporate borrowers.
Target yield is 4% above Euribor and ticket
sizes range between €10m and €25m, the direct
lender said.
(NEWS cont’d on p. 6)
IN THE NEWS
(NEWS cont’d from p. 5)
“Senior secured debt instruments offer in-
vestors a lower-risk approach to private debt
investing. These instruments tend to have
statistically higher recovery rates, possess su-
perior documents and provide strong covenant
protection,” Sandrine Richard, co-head of senior
secured Europe said in a statement.
The fund implements environmental, social and
governance considerations and monitoring into
its investment process, according to the lender.
“Muzinich has been a signatory to the PRI since
2010 and is applying experience gained from
integrating ESG considerations into the public
debt investment process to our latest private debt
strategy,” Archie Beeching, director of responsible
investment at Muzinich said. – KK
Continental goes sustainable
German automotive supplier Continental AG
has agreed a €4bn five-year revolving credit
facility (RCF) with interest linked to concrete
improvements in the company’s sustainability
performance.
The facility refinances an existing €3bn RCF that
was due to mature in April 2021 on improved
terms.
Continental has become the first German au-
tomotive company to include specially defined
sustainability indicators in its credit agreement
with its core banks.
The margin on the facility will decrease or
increase depending on whether Continental
improves its sustainability performance based
on criteria including securing electricity exter-
nally from renewable sources; increasing the
proportion of women in management positions;
reducing the accident rate and sick rate; and
increasing the proportion of recycled waste.
“This year, the executive board adopted our
updated sustainability strategy. By combining
sustainability improvements with our new credit
line, we have found an innovative way in corpo-
rate finance to further advance Continental’s
sustainability strategy,” Stefan Scholz, head of
finance & treasury at Continental, said.
Continental said that similar credit lines with
sustainability components in the market were
only aimed at achieving or maintaining selected
sustainability ratings. Since the benchmarks of
current ratings vary greatly, the company was
committed to achieving specific improvements
in sustainability performance as part of the new
credit facility.
The facility helps support the company’s
global sustainability goals, which are tied to
the Sustainable Development Goals (SDGs) of
the United Nations and to the Paris Agreement,
among others.
The RCF is being provided by a syndicate of 27
banks led by BNP Paribas and Deutsche Bank.
BNP Paribas is sustainability adviser.
Continental is rated BBB+ by S&P and Fitch. – AR
Langham completes loan
Langham Hospitality Investments Ltd, the hotel
assets spinoff of Hong Kong developer Great
Eagle Holdings Ltd, has raised a debut HK$7.5bn
(US$958m) sustainability-linked loan from eleven
lenders, sources said.
HSBC was the coordinator of the four-year
facility, which offered an all-in pricing below
100bp based on an initial interest margin of
83bp over Hibor.
The other banks that have joined HSBC as
mandated lead arranger are: Agricultural Bank
of China Hong Kong branch, Bank of China (Hong
Kong), Bank of Communications Hong Kong,
China Construction Bank, Chong Hing Bank, Hang
Seng Bank, Industrial and Commercial Bank of
China, Mizuho Bank, OCBC Bank and Sumitomo
Mitsui Banking Corp.
LHIL Finance Ltd is the borrower of the deal,
which comprises a HK$6.8bn term loan (tranche
A) and HK$700m revolving credit facility (tranche
B).
The margin will reduce by 1bp for each of three
sustainability key performance indicators the
borrower fulfils, including energy consumption,
wastes sent to landfills, and EarthCheck achieve-
ment level. The interest margin will step up by
8bp if the borrower’s Ebitda to financial charge
ratio falls below 2x.
LHIL’s three portfolio hotels in Hong Kong –
The Langham, Cordis and Eaton – will serve as
security for the loan.
Proceeds raised will refinance of a HK$7.2bn
four-year loan from March 2016, and general
corporate purposes.
Citigroup and HSBC were the mandated lead
arrangers, bookrunners and underwriters, while
China Construction Bank Asia was the MLA and
underwriter of the 2016 facility.
The financing, which paid a top level all-in of
less than 120bp based on a margin of 98bp over
Hibor, attracted 14 others in general syndication.
(March 18 2016 story) – CW
Cementos Molins agrees loan
Spanish cement group Cementos Molins has
agreed a €180m five-year sustainability-linked
loan, the first company in the Spanish cement
sector to sign a sustainable loan.
The financing comprises a €40m term loan and
a €140m revolving credit facility.
Margins are linked specifically to the company’s
performance on the reduction of CO2 emissions.
The company already uses the reduction of
CO2 emissions per ton of cement as one of the
key indicators for its sustainability barometer, an
evaluation mechanism determining the variable
remuneration of its managers.
The loan was coordinated by CaixaBank, with
Banco Sabadell, BBVA, Banco Santander and HSBC
also participating. CaixaBank is also facility agent.
Cementos Molins manufactures, distributes
and sells cement, concrete, mortars, aggregates
and concrete prefabricates. The company is active
in Spain, Argentina, Uruguay, Mexico, Bolivia,
Columbia, Bangladesh and Tunisia. – AR
LOANLYPLANET © | Page 6
Metalloinvest signs €200m PXF
Russian iron ore company Metalloinvest has
agreed a €200m 6.5-year pre-export financing
with a club of seven banks.
Metalloinvest intends to convert the new PXF,
which was coordinated by ING, into a sustain-
ability-linked facility. Societe Generale was also
part of the bank group.
“This loan has the longest maturity for the
pre-export financing ever attracted by the compa-
ny from international banks. Further, the parties
intend to link the loan pricing to the sustainable
development indicators,” said Alexey Voronov,
finance director of Metalloinvest.
Metalloinvest wanted the deal done quickly,
so there was not time to agree the sustain-
ability-linked details in advance of signing, one
banker said.
“Pricing in Russia is turning against borrowers
at the moment so Metalloinvest wanted to get
the deal done fast,” he said. “We will now work
together on a sustainability-linked covenant
and add it to the facility eventually, but it is not
happening immediately.”
The loan, which has a grace period of 5.5 years
and semi-annual amortisation, will be used to
improve Metalloinvest’s maturity profile, diver-
sify its foreign currency liabilities and reduce its
borrowing costs.
The interest rate of the loan is fixed for the
entire loan period.
In April, Metalloinvest signed a US$100m loan
with a margin linked to the company’s corporate
social responsibility rating. The financing was
provided by ING and matures in November 2020.
The CSR rating is assessed and assigned by
independent sustainability performance rating
agency EcoVadis. EcoVadis awarded Metalloin-
vest a debut CSR rating of ‘Silver’ in 2018.
The company was last in the market for a PXF
in January 2018, when it signed a US$240m
four-year PXF with a group of eight banks. – SB
Hoi Hup Realty raises Green loan
Singapore property developer Hoi Hup Re-
alty Pte Ltd has obtained a maiden S$332.5m
(US$244.2m) green loan to part finance its
acquisition of luxury hotel Andaz Singapore,
according to a press release.
Maybank, OCBC Bank and United Overseas
Bank provided the loan, which closed as a club.
OCBC acted as sole Green loan advisor.
In October M+S Pte Ltd, a joint venture between
Malaysian sovereign wealth fund Khazanah Nasi-
onal Bhd and Singapore state investor Temasek
Holdings Pte Ltd, announced that it will sell Andaz
Singapore to Hoi Hup Realty for S$475m.
This financing was issued under Hoi Hup Realty’s
green loan framework, which was developed for
the acquisition of Andaz Singapore in accordance
with the Green Loan Principles issued in 2018 by
the Loan Market Association and the Asia-Pacific
Loan Market Association.
The developer’s subsidiary, Ophir-Rochor Hotel,
is the borrower. Green loans have picked up mo-
mentum in Singapore as part of the city state’s
ambitions to be a hub for green finance. – MJ
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LOANLYPLANET © | Page 7