DBS, Nan Fung Seal HKD 1.5 billion Sustainability-Linked Loan Tied to Hard Social Targets

DBS Bank (Hong Kong) and Nan Fung Group have inked a HKD 1.5 billion (US$193 million) sustainability-linked loan, breaking new ground by tying the financing to quantifiable social impact -not just environmental metrics.

The five-year, multi-currency deal marks Nan Fung’s first-ever loan linked to a social value KPI, signalling a major shift in how Hong Kong’s property sector measures community impact.

Under the agreement, Nan Fung must boost the monetary value of its social contributions, calculated across its property portfolio through stakeholder engagement and community programmes. The developer has already notched HKD 46.6 million in measured social value through initiatives supporting seniors, mixed-age physical activity, and urban farming.

Key projects contributing to the KPI include:

• AIRSIDE Sports Date - promoting wellness and social inclusion
• Senior Docent Programme - training retirees as tour guides
• Farming Assistant Programme - enabling elderly residents to support urban farming and exhibitions

Beyond social value, the loan also tracks sustainability performance targets such as:

• Greater tenant participation in Nan Fung’s “Net Positive Lease” programme
• Increased renewable energy generation across its buildings

DBS said the financing reinforces its push to scale innovative, community-focused sustainable finance. Nan Fung described the loan as a powerful signal of its commitment to delivering measurable, real-world impact, aligned with its SEWIT framework covering social cohesion, wellness, environment, innovation, and technology.

For Hong Kong’s ESG finance market, the deal is a standout moment - one of the clearest examples yet of a major developer tying loan costs directly to the social good it produces.