Langham Hospitality Investments signs new 4‐Year Sustainability‐Linked Loan totalling HK$7.5 billion.

Langham Hospitality Investments has announced that it has closed a sustainability-linked term loan and revolving credit facility amounting to HK$7.5 billion with 11 banks, underpinned by EarthCheck reporting.
Langham Hospitality Investments has announced that it has closed a sustainability-linked term loan and revolving credit facility amounting to HK$7.5 billion with 11 banks, underpinned by EarthCheck reporting.

HONG KONG, December 2019. Langham Hospitality Investments (1270.HK) has announced that it has closed a sustainability-linked term loan and revolving credit facility amounting to HK$7.5 billion with 11 banks. The syndicated loan consists of a 4-year HK$6.8 billion term loan and a HK$700 million revolving credit facility.

Demands from banks for Langham Hospitality Investments’ new sustainability-linked loan were overwhelming. The syndicated sustainability-linked loan, which is the first raised by a listed company in the Asian hospitality sector, attracted participations by 11 banks in Britain, China, Hong Kong, Japan and Singapore.

The Eaton HK, Hong Kong

Langham Hospitality Group’s current sustainability performance is assessed by EarthCheck, the leading provider of environmental, social and governance (ESG) research and benchmarks for the travel and tourism industry globally. EarthCheck’s assessments will be used as the benchmark against which performance improvements will be scrutinised.

Langham’s CONNECT programme supports the ongoing commitments of the groups CSR pledge. CONNECT identifies four key priorities: Governance, Environment, Community and Colleagues, and they form the framework to address the most relevant corporate responsibility issues to their business.

Stewart Moore, Founder and CEO of EarthCheck said: “Environmental, social and governance performance reporting is now being factored into core business and financial decisions either as a risk for revenue or as an opportunity to support business growth and investment. EarthCheck performance reports provides a perfect platform to support these discussions.”

Ashish Sharma, Head of Loan Syndications for Asia-Pacific, HSBC said: “This is a large, landmark transaction, which demonstrates the growing importance of green and sustainability-linked loans in the financing of Hong Kong’s economy. As the first sustainability-linked loan in the hospitality sector in Asia, it is also further evidence that Hong Kong is a leader for sustainable financing in the region.” Sharma was sole sustainability coordinator, joint mandated lead arranger and bookrunner, agent and security agent on the transaction.

Carmen Ng, Director of Sustainability, Langham Hospitality Group said: “This facility is another demonstration of how we are embedding sustainability into all aspects of our business and financing strategy. As our business grows and develops, sustainability is vital in the way we manage our properties and key stakeholder relationships. We continue to pursue high standards of ethical behaviour and establish excellence in environmental responsibility as we continue to expand the number of hotels and elevate the Langham and Cordis brands.”

The Cordis, Hong Kong

“Today the financial sector stands at a crossroads of change: Since the 2008 global financial crisis, the role of finance in building equitable, sustainable economies has been heavily scrutinised across societies.” Said Jessica Cheam, Managing Editor of Eco-Business. “Set amid this backdrop is the rise of sustainable finance, which allocates capital with an environmental, social and governance (ESG) lens to create long-term value. Despite the encouraging momentum however, the deployment of private capital for sustainable finance remains relatively small.” continued Cheam.

According to the Business and Sustainable Development Commission, sustainable development in Asia will require US$5 trillion of investments to address complex challenges of climate change, growing inequality and rising urbanisation by 2030. These types of partnerships can aid the finance industry in accelerating the responsible deployment of capital for these innovators in a rapidly growing region.

Previously known as a positive-incentive loan (PIL), the sustainability-linked loan (SLL) is similar to other revolving credit facilities – a type of corporate loan – with the difference being the interest paid by the borrower. This interest is linked to selected sustainability key performance indicators (KPI), which can be, for example, carbon emissions or a more generic ESG target. Companies that achieve their sustainability targets benefit from favourable interest rates, while a failure to do so will lead to higher rates. With SLLs companies therefore have an incentive to align both financing and sustainability objectives.

The Langham, Hong Kong

Under the terms of the sustainability-linked loan, Langham Hospitality Investments will be eligible for reductions on interest rates when certain sustainability objectives have been met. The new sustainability-linked loan facility reflects Langham’s commitment to create a positive change for the environment, but furthermore, to hold themselves financially accountable for their impact on the environment and society.

EarthCheck’s deep science and patented methodology and software platform was created for the world’s travel and tourism industry by the Australian Government’s Cooperative Research Centre for Sustainable Tourism (STCRC) over a 10-year period. The STCRC grew to be the largest dedicated tourism research organisation in the world. Today, EarthCheck continues its thirty-year journey to support the development of a dynamic, internationally competitive, and sustainable tourism industry. In consultation with a broad cross section of stakeholders, EarthCheck identifies opportunities and challenges that are likely to impact on the global tourism industry over the next five to ten years with a strong focus on scientific research, thought leadership and the development of tools and products to improve business practices and inform policy development.


Keep up to date with news from EarthCheck:

EarthCheck Logo

of Country

There are more than 476 million Indigenous Peoples, found in all regions of the world, from the Arctic to the tropical forests. They make up more than 6 per cent of our global population.


In the spirit of reconciliation, EarthCheck acknowledge the Traditional Custodians of Country throughout the world and their connections to land, sea and community. We pay our respect to their Elders past and present and extend that respect to all Indigenous Peoples today.


EarthCheck acknowledges that Indigenous Peoples are guardians of the forests and biodiversity hotspots we all depend on. Research shows that lands managed by Indigenous Peoples, with secure rights, experience lower deforestation rates, store more carbon, hold more biodiversity, and benefit more people than other lands — including protected areas.


We recognise and support the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP), the most comprehensive international instrument on the rights of Indigenous Peoples. The Declaration is a positive document that maps out a path for Indigenous Peoples to be free from discrimination and secure in their identities and life choices.

EarthCheck Logo

EarthCheck Certified: Aligned globally

EarthCheck science and products were developed by the Australian Government Sustainable Tourism Co-operative Research Centre (STCRC) over ten years. Our science is reviewed annually to ensure that it meets international standards relative to greenhouse gas protocols, responsible tourism, and certification.

EarthCheck products and services are built on the Agenda 21 principles for Sustainable Development endorsed by 182 Heads of State at the United Nations Rio De Janeiro Earth Summit in 1992 and aligned to the SDGs.

EarthCheck Certified provides a framework for organisations to achieve the desired outcomes for sustainable development as set out in the final report of the World Summit for Sustainable Development held in Johannesburg in 2002.

EarthCheck Certified complies with the Mohonk Agreement (2000), which outlines the guidelines and principles for an international sustainable tourism certification program. It is also a Recognised program of the Global Sustainable Tourism Council (GSTC).

EarthCheck Certified is a verification standard accepted by CDP. It is also an approved program of the Certification and Accreditation Administration of the People’s Republic of China (CNCA), London & Partners, the Mexican Secretary of Tourism (SECTUR) and the City of Sydney.

EarthCheck Certified is an approved program for meeting the EU Energy Directive for the Federal Office for Economic Affairs and Export Control (Bundesamt für Wirtschaft und Ausfuhrkontrolle – BAFA) in Germany and the Netherlands Enterprise Agency (Ministry of Economic Affairs and Climate Policy) in the Netherlands.

EarthCheck partners with international research organisations to maintain the currency of EarthCheck science and our benchmarking systems.

The EarthCheck brand signifies scientific excellence, better environmental, economic, and social performance, improved community interactions, and savings through more efficient use of resources. It provides recognition and promotional support to a global consumer market.