A US$1.3 billion first-of-its-kind green loan supporting the major development of a cold storage and logistics facility in Hong Kong, which involved Ogier's Banking and Finance team, has been named one of China Business Law Journal's Deals of the Year 2023.

Ogier advised a syndicate led by United Overseas Bank Limited, Sumitomo Mitsui Banking Corporation, and Oversea-Chinese Banking Corporation Limited on the green financing which completed in November 2023. The deal was one of the largest green loans in Hong Kong last year.

The five-year loan to real asset manager ESR Group and property developer Chinachem, which was also shortlisted for Loan Deal of the Year at the IFLR Asia Pacific Awards, will finance the construction of the seven-storey Kwai Chung Cold Storage Logistics Centre. The Logistics Centre will be the biggest and most advanced cold storage facility to be built in Hong Kong in 20 years and the developers say that the centre will have sustainable features such as a water recycling system and electric vehicle charging points in the car parks.

Partner, Anthony Oakes, who acted as Cayman and BVI counsel from Hong Kong with managing associate Yuki Yan and associate Jonathan Law, alongside Allen & Overy and Mayer Brown, said: "As one of only two green loans recorded in Hong Kong’s real estate sector for 2023, this was significant and innovative. We are pleased to have worked on a transaction that follows the Green Loan Principles issued by the Asia Pacific Loan Market Association."

The loan documentation embedded the framework for a "hybrid split-loan tranches" structure to accommodate a partial sponsor guarantee arrangement and incorporated specially tailored infrastructure construction provisions, milestones covenants, account and cash control management, financial covenants, and business flexibility for the innovative logistics development.