Kerry Logistics Network Limited (Kerry Logistics) and a syndicate solely led by MUFG Bank Ltd. (MUFG) have signed a five-year HK$1 billion (US$128.8 million) syndicated Sustainability-linked & Social Term Loan Facility (Facility).
The Hong Kong-headquartered global 3PL said the Facility is a "first-of-its-kind" ESG-linked syndicated loan structure in the Asia Pacific, validating the company'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 of the oversubscribed Facility.
"The Facility was tailored with a cutting-edge ESG structure comprising both sustainability-linked loan and social loan tranches," the announcement said.
It noted that under the terms of the Facility, KLN is to invest in social initiatives to generate a positive impact on the communities it serves across Hong Kong and Mainland China.
Other social targets include a list of eligible social projects providing access to employment, essential services and affordable basic infrastructure.
"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 to KLN's commitment to creating a greener, safer and better-connected world," said Ellis Cheng, executive director and chief financial officer of Kerry Logistics Network.
Cerlin Ip, MUFG's head of global corporate banking in Hong Kong, said the "landmark sustainability-linked and social syndicated loan facility has further demonstrated KLN’s pioneering position in the logistics sector and deep commitment to sustainability."
It also reaffirms MUFG's efforts in partnering with clients to pursue their environmental and business agendas.
"We look forward to deepening our collaboration with KLN in their journey to a sustainable future," Ip said.