Crédit Agricole Corporate and Investment Bank has arranged its inaugural green interest rate swaps worth HK$590 million (US$64.5 million) for logistics property group Goodman Interlink. The deal marks the first green swaps in Asia-Pacific.
Crédit Agricole CIB worked hand-in-hand with Goodman in designing the sustainable swap solution, which adds a green feature to the hedge. The preferential fixed rate paid by the borrower is linked to the underlying facility’s green classification. Borrower’s fixed rate steps up to non-preferential if the green condition fails.
Specifically, the green condition is satisfied as long as two requirements are met, i.e., the facility maintains a silver certificate from the US Leadership in Energy and Environmental Design (LEED), the most widely used green building rating system in the world, and a gold certificate of the Building Environmental Assessment Method (BEAM) from the BEAM Society, an organization specializing in green certification for Hong Kong buildings.
Crédit Agricole CIB says the transaction reaffirms the bank’s commitment to green and sustainable finance while demonstrating its strong track record in providing logistics financings in Hong Kong.
“It is a testimony to Goodman’s clear vision to create green assets and of our bank’s innovation and structuring capabilities to develop green financial products,” notes Dominique Duval, head of sustainable banking for Asia-Pacific at Crédit Agricole CIB.