Hong Kong-listed Kerry Logistics Network (KLN) and a syndicate of lenders led by MUFG Bank have signed a five-year sustainability-linked and social term loan facility amounting to HK$1 billion (US$128.8 million).

The facility is a first-of-its-kind syndicated loan structure in Asia-Pacific, validating KLN’s pioneer position in the logistics sector and commitment to upholding environmental, social and governance (ESG) standards, MUFG says.

The oversubscribed transaction showcases MUFG’s unparalleled syndication arrangement and ESG structuring capabilities, while leveraging its deep relationship network to broaden the investor base for clients, the bank adds.

MUFG acted as the sole mandated lead arranger, bookrunner and underwriter as well as sustainability and social loan structuring adviser for the facility.

The facility was tailored with a cutting-edge ESG structure comprising both sustainability-linked loan and social loan tranches. Under the terms of the facility, KLN will invest in social initiatives to generate positive impact to the communities it serves across Hong Kong and mainland China.

Other social targets include a list of eligible social projects providing access to employment, essential services and affordable basic infrastructure.