ING coordinates US$260m sustainability-linked loan for Hop Lun in Hong Kong

Hong Kong, 1 December 2023 – ING has acted as Sole Sustainability Coordinator for a US$260 million financing of Hop Lun, a Hong Kong-headquartered international lingerie and swimwear Original Design Manufacturer owned by Platinum Equity (Platinum).

Hop Lun has converted its US$260 million syndicated bank loan into a sustainability-linked loan (SLL). ING was one of four Bookrunner Mandated Lead Arrangers (BMLAs) that underwrote the acquisition financing package supporting Platinum’s acquisition of Hop Lun in 2022.

The SLL, structured by ING, links the facility’s interest margin to performance against three key sustainability indicators:

• Reduction in greenhouse gas emissions

• Supplier engagement, measured using Higg Facility Environmental Module scores from the Higg Index developed by the Sustainable Apparel Coalition

• Gender balance among female supervisors across Hop Lun’s global factory network

Anju Abrol, CEO and head of Wholesale Banking, ING APAC, said: “We are delighted to support Hop Lun on their sustainability journey and to help facilitate the net-zero transition of the apparel industry. We expect transactions like Hop Lun’s to pave the way for greater private equity interest in sustainable finance as the APAC market continues to mature.”

Marko Popovic, head of Acquisition Finance, ING APAC, added: “This transaction marks our second Sole Sustainability Coordinator mandate supporting private equity-owned companies in APAC this year, following the recently announced Goodpack SLL. It firmly establishes ING as a sustainable finance leader within APAC’s private equity-backed leveraged finance market.”

Hop Lun designs and manufactures products for more than 200 brands, serving a diverse client base that includes 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 12 manufacturing facilities in China, Indonesia, and Bangladesh.

Platinum Equity is a global investment firm with approximately US$47 billion in assets under management and a portfolio of more than 50 operating companies serving customers worldwide. The firm specializes in mergers, acquisitions, and operations—a trademarked strategy it calls M&A&O®—acquiring companies across a broad range of industries and building market leaders through operational excellence, growth investments, and transformational initiatives.

ING is recognised as a pioneer in sustainable finance and continues to help clients transition to more sustainable business practices. Since launching the world’s first sustainability-linked loan in April 2017, ING has introduced a range of innovative solutions to align its financing with global climate goals. In 2022, ING mobilised over €100 billion in sustainable finance globally, putting the bank well on track to reach its target of €125 billion annually by 2025.

Society is transitioning to a low-carbon economy. So are our clients, and so is ING. We finance a lot of sustainable activities, but we still finance more that’s not. See how we’re progressing on Opens in a new tabing.com/climate