CLP Supports Far East Consortium to Secure First Sustainability-Linked Loan 

CLP have supported Far East Consortium International Limited (FEC) to secure the first five-year sustainability-linked loan (SLL) issued by the Bank of Communications Co., Ltd. Hong Kong Branch (BOCOM HK Branch). The sustainability-linked loan will help fund FEC’s sustainable and energy-saving initiatives throughout their hotel business, promoting their sustainable development by improving energy conservation and carbon emissions reduction performance. 

CLP conducted an energy audit at FEC’s Silka Seaview Hotel to advise various energy-saving solutions for the hotel, such as switching to a smart lighting system and central air-conditioning system, replacing the existing gas water heating system with an electric heat pump water heating system, and installing smart air conditioning devices in all guest rooms. With these measures implemented, it is estimated the hotel can save about 1 gigawatt hour (GWh) of electricity per year. Additionally, CLP is offering FEC the CLP Eco Building Fund in order to subsidise eligible improvement works, shortening the investment payback period. 

These energy-saving solutions provided by CLP’s energy audit report were thereby accepted as the sustainability performance targets (SPTs) for a SLL between FEC and BOCOM HK Branch. Upon meeting these SPTs, FEC can benefit from a favourable loan interest rate to continue advocating its low-carbon business transformation.

To meet these SPTs, FEC is developing a five-year energy conservation and emission reduction plan, with the aim to reduce the energy intensity of the hotel building by 3-5% per year. It has also set SPTs in relation to the company’s corporate social capital investment. An independent body, the Hong Kong Quality Assurance Agency will assess the SPT performance of FEC. 

CLP will continue helping customers improve their energy efficiency, drawing on our energy expertise to provide more diversified energy management solutions. This will support the development of the green finance ecosystem, as well as the envisaged low-carbon transformation of the hotel industry, all in support of Hong Kong’s goal to achieve carbon neutrality by 2050.