Lendlease Global Commercial REIT (LREIT), has obtained a $100 million unsecured sustainability-linked term loan facility to help refinance a loan due in the financial year ended 2023.
The sustainability-linked loan (SLL) is In line with LREIT’s commitment to build a sustainable portfolio.
It incorporates interest rate reductions linked to predetermined sustainability performance targets, which allows LREIT to enjoy savings in borrowing costs as it achieves these targets.
In Feb, LREIT had already set up a $860 million sustainability-linked term loan facilities, which it says is the largest SLL amongst REITs in Singapore.
“This latest sustainability-linked loan marks the continuation of LREIT’s sustainability journey, with sustainable financing now accounting for more than 60% of total borrowings, increasing from 56% previously,” says Kelvin Chow, CEO of the REIT’s manager.
“As the Lendlease Group is a signatory to the United Nations’ Principles for Responsible Investment, we will continue to work with our partner banks to achieve our sustainability goals and deliver sustainable outcomes for all our stakeholders,” he adds.
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LREIT closed July 26 at 83 cents, unchanged for the day, and down 5.17% year to date.
