Dutch bank ING has acted as the sole sustainability coordinator for a $260 million financing of Hong Kong-headquartered international lingerie and swimwear manufacturer Hop Lun, owned by US private equity firm Platinum Equity, according to a company release.
Hop Lun has converted its $260 million syndicated bank loan into a sustainability-linked loan (SLL).
Hop Lun’s SLL links the facility interest margin to improvements or deterioration in three key performance indicators. These include a reduction in greenhouse gas emissions, supplier engagement using the Higg Facility Environmental Module scores of the Higg Index developed by the Sustainable Apparel Coalition, and the gender balance of female supervisors across factories globally.
When asked by FinanceAsia, ING was unable to disclose the commercial terms on the interest rate margin. A spokesperson added that the greenhouse gas emissions, e.g. scope 1 and 2 emissions, are tracked and calculated according to the GHG protocol.
Anju Abrol, CEO and head of wholesale banking, ING APAC, said: “We are delighted to be able to uphold Hop Lun on their sustainability journey and to ease the net-zero transition of the apparel industry. We expect transactions such as Hop Lun to pave the way for more private equity sector interest in sustainable finance as the market matures in APAC.”
ING was alos one of the four BMLAs that underwrote the acquisition financing package backing Platinum’s acquisition of Hop Lun in 2022.
In the same year, ING achieved a volume of over €100 billion ($108.3 billion) in sustainable finance globally. ING said it has an aim of increasing this to €125 billion annually by 2025.
Marko Popovic, head of acquisition finance, ING APAC, said: “This transaction is our second sole sustainability coordinator mandate backing private equity-owned companies in APAC this year, following the recently announced Goodpack SLL transaction.”
Goodpack is a Singapore-based logistics supply chain company owned by KKR.
Hop Lun
Hop Lun designs and manufactures products for more than 200 brands serving a diverse group of clients including supermarkets, fast-fashion retailers, lingerie specialists and online brands, primarily based in the US, EU and UK. The company employs over 25,000 workers across its 12 manufacturing facilities in China, Indonesia and Bangladesh.
Platinum Equity is a global investment firm with approximately $47 billion of assets under management and a portfolio of more than 50 operating companies that serve customers around the world.
The private equity firm specialises in mergers, acquisitions and operations – a trademarked strategy it calls M&A&O – acquiring and delivering operational expertise to companies in a broad range of business markets.
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