The manager of Keppel DC REIT AJBU (KDCREIT) announced that Keppel DC REIT Fin. Company, a subsidiary of KDCREIT, has obtained a sustainability-linked Islamic Credit Facility guaranteed by Perpetual (Asia), in its capacity as trustee of KDCREIT, pursuant to a master murabahah agreement dated Spet 22.
The multi-currency credit facility is worth $120 million and is a sustainability-linked murabahah revolving credit facility.
Under the terms and conditions of the Master Murabahah Agreement, Keppel DC REIT Fin. Company will be required to early settle all amounts disbursed under the credit facility within 10 business days in the event that the manager ceases to be the manager of KDCREIT and an entity [where at least 50% of all the issued share capital of such entity is owned (directly or indirectly) by Keppel Capital Holdings and/or Keppel Corporation Limited] is not appointed as a replacement or substitute manager of KeKDCREIT in accordance with the terms of the deed of trust constituting KDCREIT and applicable law prior to such cessation.
Assuming the occurrence of the mandatory early settlement event, and that such occurrence would cause a cross default under other borrowings of the KDCREIT group, the aggregate level of facilities that may be affected is, as at the date of this announcement, approximately $2.07 billion (excluding interest and fees).
As at Sept 22, the mandatory early settlement event has not occurred.
Units in KDCREIT closed at $2.16 on Sept 22, while gearing stands at 0.611 times as at end FY2022.
