October 2021
CIC has not carried out any audit mission for nor commissioned any consultancy services with Grace Castle Corporation Limited and there is no established relationship (financial or others) between CIC and Grace Castle Corporation Limited .
The opinion provided herein is an independent opinion on the sustainability credentials and management of the financial instrument, based on the information made available to CIC. CIC has neither interviewed any of the Grace Castle Corporation Limited ’s employees, nor performed any on-site assessment and tests to check the accuracy of the information provided by Grace Castle Corporation Limited . The accuracy, comprehensiveness and trustworthiness of the information collected rests with Grace Castle Corporation Limited . CIC, in providing this opinion, has not certified the effectiveness, the quality or the irreversibility of the assets to be financed by the sustainable financing instrument. Grace Castle Corporation Limited is fully responsible for attesting the compliance with its commitments defined in its policies, for their implementation and monitoring. The opinion delivered by CIC neither focuses on the financial performance of Grace Castle Corporation Limited , nor on the effective allocation of its proceeds. CIC is not liable for the consequences arising if third parties use this opinion either to make investment decisions or to make any kind of business transaction.
The opinion provided by CIC on Grace Castle Corporation Limited can only be used by Grace Castle Corporation Limited and the Financial Institution. The distribution and publication are at the discretion of Grace Castle Corporation Limited , subject to CIC’s approval.
| Application no. | SFCS-APPLY-2021-012 |
|---|---|
| Certificate no. | SFCS-2021-016 |
| Date of application | 2021.12.08 |
| Company name | Grace Castle Corporation Limited |
| Business registration no. | 69573886 |
| Company profile | Chinachem Group is a leading property developer based in Hong Kong, with a real estate pedigree dating back to the 1960s. Today, we develop residential, commercial, retail and industrial properties, and own and manage hotels. We uphold integrity, accountability, teamwork, innovation, harmony and win-win as the values that drive our operations and benefit our stakeholders, ultimately bringing positive change to our communities. We are forward thinking in embracing new ways to work, through organisational change and digital transformation, as we forge ahead into our next century of success. |
| Sustainable financing instrument | Green Loan |
| Application level | Project Level |
Grace Castle Corporation Limited has confirmed the proceeds will be used for the specified Project Categories that meet the eligibility criteria stated:
| Project Categories | Green Building |
| Eligibility Criteria | chieve at least 2nd highest grade of green building assessment tool (e.g. BEAM Plus) |
Grace Castle Corporation Limited has confirmed that the selected Project Categories and Eligibility Criteria are in line with the following internationally recognized frameworks across financial markets:
Frameworks
Grace Castle Corporation Limited has also confirmed the following purposes of the proceeds:
Purpose of financing
Grace Castle Corporation Limited has identified the below project(s) as eligible green projects which meet the eligible criteria:
| Project name | Ho Man Tin Station Package Two Property Development at KIL No. 11264 (Site B) (“HMT Station Project”) |
| Location | 1 Chung Hau Street, Ho Man Tin, Kowloon |
| Project description | Ho Man Tin Station Package Two is an upcoming private residential development situated directly above the Ho Man Tin MTR Station. It is a joint venture collaboration between Mass Transit Corporation Limited (MTRCL) and Chinachem Group (CCG), the development occupies a total site area of 12,042 square meters solely for residential use. Altogether, a total of 845 nos. of residential units will be available from the 4 residential towers with 3 towers of 25 storeys and 1 tower of 24 storeys sitting on top of a podium with carpark and clubhouse. The development will deliver a mixture of different flat types, ranging from 1-bedroom units up to 4.5-bedroom units to cater for the different demands and needs of future residents. Special units are presented at the topmost two floors of each tower, offering breath-taking views of the nearby surroundings for luxury living at its finest. |
| Highlights of green elements and estimated environmental impact | The current design of the project can achieve the Platinum rating under BEAM Plus for New Building V1.2 according to the assessment of an independent professional consultant. |
Grace Castle proposes to raise Green Loan for its HMT Station Project that falls into one of the Green Loan Principle project categories which is green building.
Grace Castle confirmed the current design of the HMT Station Project can achieve the Platinum rating under BEAM Plus. The Project also achieve better grading in aspects of energy use and indoor environmental quality.
To ensure that the projects financed by the sustainable financing instrument meet the eligible criteria, Grace Castle Corporation Limited has established an evaluation and selection process with the following key elements:
Evaluation and selection
The project evaluation and selection process involve participants from various functional areas, including Real Estate Division, Treasure Department and other relevant functional teams according to the criteria including local policy and legal requirements, criteria set in the Use of Proceeds, and internal compliance and regulation. The shortlisted projects will be reported to the Executive Committee (EXCO) for approval.
Grace Castle will also refer to the exclusion list of the International Finance Corporation as standards for its project consideration and the proceeds would not be allocated to projects in the exclusion list.
Grace Castle confirmed that an internal registry will be set up for the proceeds and the environmental and social risks will be considered before the approval of EXCO.
We consider that the applicant has well-defined internal checking procedures for project evaluation and selection.
Grace Castle Corporation Limited has provided information regarding the internal governance process through which the company can track allocation of funds towards green projects. Grace Castle Corporation Limited will establish a register of funds to contain the following information:
Information
Pending the full allocation of the proceeds, Grace Castle Corporation Limited intends to hold and/or invest the balance of proceeds not yet allocated in accordance with n/a
Grace Castle confirmed that there is a dedicated account for the proceeds. Key transaction information, including transaction date, the principal amount of proceeds, maturity date and interest, purchase contract and/or relevant project or sales contract will be recorded. A list of eligible projects and brief descriptions of the projects will also be included, and it has internal mechanism in tracking the financial account.
Grace Castle Corporation Limited is committed to transparent reporting and will publish Project Progress Report within one year from the date of issuance of each sustainable financing instrument and annually thereafter until the full allocation of the proceeds. The report will consist of information on the allocation of the proceeds and the environmental impacts of the projects.
Allocation Report
In terms of impact reporting, Grace Castle Corporation Limited will report on relevant environmental metrics of the projects to which the proceeds have been allocated in line with the technical requirements.
| Project Categories | Green Building |
| Metrics | Green Building certification obtained (at least 2nd highest) |
| Methodologies | BEAM Plus |
We confirmed that Grace Castle has committed to continue to perform use of proceeds and impact reporting with work progress on an annual basis through project progress report.
| Use of proceeds | Compliant |
|---|---|
| Project evaluation and selection | Compliant |
| Management of proceeds | Compliant |
| Reporting | Compliant |
Based on the above assessment, we recommend to approve the application (Application no.: SFCS-APPLY-2021-012, Certificate no.: SFCS-2021-016) of the CIC Sustainable Finance Certification Scheme with validity from 08-10-2021 to 07-10-2023 .