In recent years, the HKSAR Government, financial regulators and the industry have made concerted efforts to drive the development of green and sustainable finance in Hong Kong by adopting a multifaceted approach. Consequently, the scale of the market continues to grow and related ecosystems are becoming increasingly mature. In 2021, the amount of green and sustainable debt financing arranged and issued in Hong Kong achieved another record high of US$57 billion, a four-fold increase year-on-year, of which the total amount of green and sustainable bonds reached US$31.3 billion. This accounted for one-third of the total amount in Asia, and ranked first in terms of amount of international bond issuance arrangement in Asia. By leveraging its close ties with China, Hong Kong is capable of introducing global capital flows into China's carbon market so as to seize opportunities arising from the 14th Five-Year Plan, Greater Bay Area development and the "Belt and Road" initiative. This will also help promote Hong Kong's development into a green and sustainable financial hub in the region.

Yuexiu REIT (00405.HK), as an advocate of the green and sustainable development concept, has been taking advantage of the more diversified green and sustainable financial ecosystem in Hong Kong to actively develop green finance. In 2021, a Hong Kong bank syndicate provided the first green club loan worth HK$4.8 billion to Yuexiu REIT, and subsequently, in November 2022, it secured a three-year sustainability-linked loan with a total value of HK$3.6 billion. The agreed indicators of this loan will help it achieve several sustainable development goals, including lowering the intensity of greenhouse gas emissions, increasing the proportion of green buildings in its property mix, improving mainstream ESG ratings, etc.

In addition, it has also participated in green building construction, and its benchmark properties have obtained green building certification from the industry. The Guangzhou International Finance Center has been certified by LEED EBOM V4 Platinum, BOMA China COE, and BOMA International 360 Performance Program, while Yuexiu Financial Tower has obtained LEED EBOM V4 Platinum Certificate, Platinum WELL Mid-term Certificate and China Green Building Three-star Certificate. As of mid-2022, 56% of its property portfolio were green property area certificated to LEED gold or above standards.

Capitalizing on its outstanding performance in green and sustainable finance in the past year, Yuexiu REIT won two major awards at Hong Kong Green and Sustainable Finance Awards 2022, organized by the Hong Kong Quality Assurance Agency ("HKQAA") on 1 December 2022, namely "Outstanding Award for Green and Sustainable Loan Issuer (Real Estate Investment Trust Funding) – Visionary Sustainability-linked Loan Performance Metrics" and "Pioneering Organisation in Climate Disclosure Planning". As the Hong Kong Government attaches tremendous importance to the event, the Hon John KC Lee, Chief Executive of the Hong Kong SAR, was present at the event as officiating guest.

Mr. Lin Deliang, Chairman of the Board, Executive Director and Chief Executive Officer of Yuexiu REIT, said, "This is the first time that Yuexiu REIT has received a green finance award. Winning the award is significant for us as it represents strong affirmation of the great leaps that Yuexiu REIT has made in green finance and sustainable development due to our efforts in such areas in recent years. Being a member of the sustainability ecosystem, we will uphold the concept of ‘creating sustainable value' and endeavor to contribute to the green ecology in China as well as worldwide."

Yuexiu REIT was listed on the Hong Kong Stock Exchange in 2005. It is the world's first listed REIT to only invest in properties in Mainland China. Its nine properties are located in the core areas of Guangzhou, Shanghai, Wuhan and Hangzhou, with a range of property types including office buildings, retail malls, wholesale malls, hotels and serviced apartments. Yuexiu REIT has placed high emphasis on sustainable development. Yuexiu REIT has published the Environmental, Social and Governance Report (ESG Report) for six consecutive years since 2016. In early 2022, it launched a new sustainability column disclosing ESG-related information on its official website. In the future, Yuexiu REIT will continue to meet its green and sustainable finance goals. With the concerted efforts of the Company, it will make further strides towards green, low-carbon and sustainable development, as well as make larger contributions that result in high-quality asset enhancement and greater economic and social benefits.