Sustainability-Linked Loan (SLL) Advisory and Execution Support (Targets-Based)
Client: Hotel

Project: Sustainability-Linked Loan (SLL) Advisory and Execution Support (Targets-Based)
Client: Hotel operator, Macau (hospitality asset)

Engagement Origin: Introduced through a partner’s established financial network, enabling efficient access to suitable sustainable finance counterparties.

Client Need

The client sought financing that would

(i) reduce funding cost through sustainability performance incentives and

(ii) deliver measurable environmental and social outcomes.

The engagement started from a zero base: no defined SLL KPIs, no baselined dataset, and no monitoring governance to meet lender expectations.

EcoVision Scope of Services (From Zero to Capital Injection)

1. Readiness Review and Baselining
EcoVision assessed operational data availability and established baselines suitable for targets-based financing, focusing on two priority areas: Energy (E) and Community (S).
2. SLL KPI/SPT Design and Calibration
EcoVision developed a lender-ready KPI architecture aligned with SLL market practice, including clear definitions, calculation methods, data ownership, and review cadence. Example KPIs/SPTs included:
* Energy / Climate: Reduce electricity intensity (kWh per occupied room-night) by an agreed % over a defined timeline; improve building energy performance through chiller/HVAC optimization, BMS tuning, and LED + smart controls; optionally increase renewable electricity share where feasible.
* Community / People: Commit to measurable workforce and community outcomes, such as minimum training hours per employee per year, structured apprenticeship placements with local partners, and/or an increased share of addressable procurement spend with local SMEs.
1. Lender Engagement and Documentation Support
We coordinated inputs across finance and operations, prepared the sustainability narrative, KPI methodologies, and an evidence pack for credit review, and supported term sheet alignment between commercial terms and sustainability targets.
2. Execution Enablement, Monitoring, and Reporting
EcoVision supported implementation planning, set up tracking routines and internal controls for KPI data, and established governance for periodic performance review and lender reporting.

Outcome and Value Delivered
The client achieved a successful SLL capital injection with a lower interest rate mechanism linked to performance against agreed targets.

The structure delivered a clear win-win: reduced financing cost for the hotel, verified progress on energy efficiency and emissions reduction, plus strengthened community impact through workforce development and local engagement.