Nan Fung Group Issues First Sustainability Bond Under Updated Sustainable Finance Framework

(25 June, 2026 – Hong Kong) – Nan Fung Group (“Nan Fung” or the “Group”) is proud to announce the successful issuance of its inaugural 10-year USD 500 million sustainability bond under its updated Sustainable Finance Framework (the “Framework”). This marks a major milestone in the Group’s sustainable finance journey, reinforcing its commitment to integrating environmental and social considerations into its financing strategy.

The transaction was met with overwhelming demand from international institutional investors, with the orderbook exceeding USD 3.7 billion and oversubscribed by 7 times at its peak, ultimately closing above USD 3.2 billion and oversubscribed by 6 times. This exceptional market response allowed the bond to price at a spread of 142 basis points over U.S. Treasuries, representing a tightening of 33 basis points from its initial price guidance. The pricing tightening strongly underscores the robust investor demand and deep market confidence in Nan Fung’s credit profile.

Building on the Group’s original Sustainable Finance Framework, first published in December 2021, the updated Framework reflects the continued evolution of the Group’s sustainability strategy and provides enhanced criteria and guidelines for future Sustainable Finance Transactions (“SFTs”).

Net proceeds raised from SFTs will be used exclusively to finance or re-finance the “Eligible Green Projects” or “Eligible Social Projects” under the Framework, including green buildings, energy efficiency, renewable energy, employment generation and programmes, and socioeconomic advancement and empowerment. Information on the allocation of net proceeds will be updated annually and made available on the Nan Fung corporate website.

The Framework obtained an independent Second Party Opinion from Moody’s, confirming its alignment with the Green Bond Principles 2025, Social Bond Principles 2025, Sustainability Bond Guidelines 2021, Green Loan Principles 2025, and Social Loan Principles 2025.
Nelson Tang, Group Chief Financial Officer of Nan Fung Group, said, “At Nan Fung, we see sustainable finance as an important enabler of long-term value creation. The successful issuance of our inaugural sustainability bond reflects our commitment to supporting both business resilience and positive impact for the communities we serve”.

For more information about Nan Fung Group’s updated Sustainable Finance Framework, please see: Nan Fung Sustainable Finance Framework (2026)

 

About Nan Fung Group

Nan Fung Group is one of the largest privately held conglomerates in Hong Kong with global interests in real estate development and investment, which holds a well-diversified and substantial financial investment portfolio. The Group was founded in 1954 and has a track record spanning more than 60 years with over 170 projects including residential, commercial and industrial buildings. The Group also strategically focuses on first-tier cities in Chinese Mainland and recognises attractive opportunities for development and investment overseas, including New York, Boston and London.

About SEWIT

In 2022, Nan Fung Group established “SEWIT”, a sustainability framework built around five strategic pillars: Social Cohesion, Environment, Wellness, Innovation, and Technology. Integrated across the Group’s entire value chain, SEWIT has since become an integral part of the Group’s culture and a key driver of its sustainability ambitions. In 2025, the Group further advanced the impact of SEWIT through the introduction of “SEWIT-as-a-Service”, an innovative business strategy designed to support tenants, partners, and businesses in realizing their sustainability visions and business goals.

Together, these efforts underscore the Group’s commitment to embedding sustainability into every aspect of its operations, while creating lasting impact for its stakeholders and communities.