DBS HK and Lukfook Group sign HK$326m sustainability loan

DBS Hong Kong and Lukfook Group have signed Lukfook’s first sustainability-linked loan of HK$326 million, as part of Lukfook's commitment to achieve environmental protection-related goals.

This comes as part of Lukfook’s three-year corporate goal, which aims to reduce the company's energy consumption intensity and greenhouse gas emissions intensity through environmentally friendly practices across its operations and production activities.

This sustainability-linked loan echoes Lukfook’s goal to complete the establishment of its environmental protection-related goals, including the long-term carbon reduction goals, as well as goals related to exhaust gas and greenhouse gas emissions, waste, energy use efficiency and water efficiency, within this timeframe, with a view to aligning with the Hong Kong Special Administrative Region Government’s target of achieving carbon neutrality before 2050.

The loan includes revolving credit facilities with interest rates linked to Lukfook Group’s sustainability performance against the agreed set of KPIs.

On the other hand, DBS has been supporting clients across different industries to progress in their sustainability journey. In recent years, DBS Hong Kong has completed a number of sustainability-linked financings for various companies such as The Hongkong and Shanghai Hotels Group, Gammon Construction, Hong Kong Land and Xinyi Energy.

MARKETING-INTERACTIVE has reached out to Lukfook Group for more information.

Wong Wai Sheung, chairman and chief executive officer of Lukfook Group, said: “Sustainability plays an important role in Lukfook’s daily operations. We strive to optimise our environmental, social and governance management systems, and strive to integrate environmental, social and governance concepts into our corporate planning and operational decisions.

“We are thrilled to have DBS Hong Kong on board as one of our key partners in this sustainable endeavour. This sustainability-linked loan marks an important milestone in Lukfook’s sustainable development and affirms our continued efforts on environmental, social and governance issues. Going forward, we will continue to leverage Lukfook’s influence to promote sustainable development and move towards a low-carbon future,” Wong added.

Wallace Lam, managing director and head of institutional banking group of DBS Hong Kong, said: “As a purpose-driven bank, DBS Hong Kong is delighted to support Lukfook, one of Hong Kong’s leading jewellery groups by extending our first sustainability-linked loan to them. We look forward to extending our partnership with Lukfook Group in their future sustainable development and will continue to help our clients transition to a low carbon environment and society.”

Back in August, DBS Bank Hong Kong and HSH Financial Services, a wholly-owned subsidiary of The Hongkong and Shanghai Hotels, finalised a three-year HK$800 million sustainability-linked revolving credit facility to facilitate HSH’s general corporate purposes, including the refinancing of its existing indebtedness.

This facility marks the first bilateral sustainability-linked loan between DBS Hong Kong and HSH Financial Services, for which the bank will serve as the sole lender. The Key Performance Indicators (“KPIs”) set by HSH Financial Services include a reduction in carbon intensity and energy intensity, an increase in waste diversion rate, and an increase in number of hotels receiving sustainability certification by EarthCheck.

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