HKBN Signs HK$5.25bn Sustainability-Linked Loan

HONG KONG,Dec. 24, 2024/PRNewswire/ -- HKBN Ltd. ("HKBN"or the"Company"; SEHK stock code: 1310) is delighted to announce the signing of its inauguralHK$5.25 billionsyndicated Sustainability-Linked Loan (the"SLL Facility") under the HKBN Ltd. Sustainability-Linked Financing Framework ("Framework"), with 11 leading international, regional and local banks. The facility includes enhanced terms and a greenshoe mechanism that allows HKBN to upsize the loan in the future. Proceeds from the SLL Facility will be used to refinance the Company's outstanding loans.

The overwhelming response from the market is a vote of confidence in HKBN's business plan. This landmark SLL Facility reaffirms HKBN's long-term commitment to sustainability and responsible business practices while driving business growth. It also includes an interest rate adjustment mechanism that is linked to predetermined sustainability performance targets (SPTs). This will allow HKBN to benefit from savings in borrowing costs upon the successful attainment of the specified key performance indicators (KPIs).

The specified KPIs and SPTs are tailored to address climate change mitigation and cybersecurity within HKBN. The first KPI focuses on Scopes 1 and 2 emissions. The second KPI involves the average failure rate of phishing assessments for HKBN's Talents. The third and final KPI comprises Scope 3 emissions. Emissions reduction targets were set in line with HKBN's near-term GHG emissions reduction targets recently validated by the Science-Based Targets initiative ("SBTi"); while those for KPI 2 were set based on the performance results from impromptu simulated email assessments, which the company will conduct to evaluate its Talents'susceptibility to phishing attacks – a vital and necessary exercise for measuring cybersecurity risk.

HKBN has appointed Sustainable Fitch to provide a Second Party Opinion ("SPO") on the Framework with an overall rating of"Good". The SPO affirms that the Framework aligns with the Sustainability-Linked Loan Principles set forth by the Loan Market Association, the Loan Syndications and Trading Association, and the Asia Pacific Loan Market Association.

The SLL Facility is led by Bank ofChina(Hong Kong) Limited, BNP Paribas, Cathay United Bank Company, Limited,Hong KongBranch, Crédit Agricole Corporate and Investment Bank,Hong KongBranch, DBS Bank Ltd., ING Bank N.V.,Hong KongBranch and The Bank ofEast Asia, Limited as the Mandated Lead Arrangers, Bookrunners and Underwriters and participated by Fubon Bank (Hong Kong) Limited, Natixis,Hong KongBranch, Shanghai Pudong Development Bank Co., Ltd.,Hong KongBranch and Taipei Fubon Commercial Bank Co., Ltd. as the Mandated Lead Arrangers and Bookrunners. Crédit Agricole Corporate and Investment Bank,Hong KongBranch and ING Bank N.V.,Hong KongBranch are the Joint Sustainability Coordinators. Rothschild& Co is the financial adviser for HKBN.

Derek Yue, HKBN Co-Owner& Chief Financial Officer said,"Through this refinancing deal, HKBN is not just reshaping our financial well-being with better loan terms, but setting a new standard for corporate accountability and sustainability. Our focus on achieving key performance indicators in climate change mitigation and cybersecurity reflects our dedication to a more sustainable future and a secure digital environment. We believe that by aligning our financing initiatives with these crucial objectives, we are not only strengthening our business but also contributing to a better world for all."

Nancy Cheng, Managing Director, Head of Tech Coverage APAC, at Crédit Agricole Corporate and Investment Bank, commented,"Being a long-standing banking partner of HKBN, we are delighted to play a key part in HKBN's inaugural SLL transaction, which is the very first inHong Kongfor the telecommunications market. It establishes a new benchmark for the sector, akin to how HKBN has continually set and raised the bar for broadband speeds inHong Kong. We are dedicated to continuing our role in supporting HKBN's financing and sustainability journey in the future."

Shalini Sujanani, Managing Director, TMT& Healthcare for ING inAsia Pacific, commented,"We are pleased to support HKBN's sustainability journey as Joint Sustainability Coordinator for this landmark facility. By embedding ambitious KPIs into their financing, HKBN demonstrates that sustainability and business performance can go hand in hand. This SLL Facility reflects the growing importance of aligning financial strategies with environmental and social objectives, and we are excited to help HKBN drive meaningful impact through this partnership."

About HKBN Ltd.

HKBN Ltd. (SEHK Stock Code: 1310, together with its subsidiaries,"HKBN"or the"Group") is an investment holding company.  Headquartered inHong Kongwith operations spanning acrossHong Kong,Macauand mainlandChina, the Group is a leading integrated telecommunications and technology services provider. The Group provides a full range of one-stop, high-quality information and communication technology (ICT) solutions and an unlimited services portfolio. HKBN's extensive tri-carrier fibre infrastructure covers around 2.6 million residential homes and 8,200 commercial buildings and facilities acrossHong Kong. Committed to creating a lasting positive impact to wherever it operates, HKBN embraces a core purpose to"Make our Home a Better Place to Live"and has received a highest possible rating of AAA in MSCI's 2024 ESG Ratings assessment in environment, society and governance. The Group is managed by hundreds of Co-Owners (supervisory and management level Talents in the Group) who invested their savings to buy shares of HKBN Ltd.. For more information about HKBN, please visithttps://www.hkbn.net/group/en.

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