New World Development Company Limited’s US$200 Million Guaranteed Sustainability-Linked Notes Offer

Clifford Chance has advised J.P. Morgan Securities and UBS on New World Development (NWD) Company Limited’s issuance of US$200 million 3.75% Guaranteed Sustainability-Linked Notes due 2031.

The issuance is the first US dollar sustainability-linked bond by a real estate company globally and also the first US dollar sustainability-linked bond in Asia (ex Japan).

The Notes have a sustainability performance target of achieving 100% renewable energy for NWD’s Greater Bay Area rental properties by 2026. The performance against the target, which will be reviewed by a third-party assurance provider, will be reported in NWD’s annual report until the Notes matures. Should NWD fail to achieve the target, it will purchase carbon offsets in an equivalent amount to 25 basis points per annum from 2027 until the Notes matures.

Clifford Chance’s Partner Mark Chan (Picture) led on the deal and was supported by a team in Hong Kong that includes senior associates Nathan Wong and Sarah Cheng, and trainee Ken Fok. London partners Nigel Howorth, James Pay and Clare Burgess were also involved on the carbon offset aspects of the deal.

Involved fees earner: Clare Burgess – Clifford Chance; Mark Chan – Clifford Chance; Sarah Cheng – Clifford Chance; Nigel Howorth – Clifford Chance; James Pay – Clifford Chance; Nathan Wong – Clifford Chance;

Law Firms: Clifford Chance;

Clients: JP Morgan Securities; UBS;


Author: Michael Patrini