Sapphire Star Trust, which is 40%-owned by Frasers Centrepoint Trust (FCT), has obtained its first green loan of $589 million.
Sapphire Star Trust is the property owner of Waterway Point.
The loan is a five-year Singapore Overnight Rate Average (SORA)-based secured term loan and an uncommitted revolving loan facility arranged by Sumitomo Mitsui Banking Corporation (Singapore) and United Overseas Bank Limited (UOB).
The loan is structured as a green loan based on the Green Loan Principles issued by the Loan Market Association, the Asia Pacific Loan Market Association, and the Loan Syndications & Trading Association.
SEE:Frasers Centrepoint Trust remains in favour amid equity fund raising on Waterway Point stake acquisition
The loan will be used to refinance existing borrowings, for working capital and general corporate funding requirements of Sapphire Star Trust in relation to Waterway Point.
FCT’s share in this loan is proportionate to its 40% interest in Sapphire Star Trust.
The loan will enjoy a reduction in margin on its second year if Waterway Point retains its current Green Mark Gold certification status issued by the Building and Construction Authority (BCA).
“FCT views sustainability as an integral part of its business strategy. As a testament of the manager’s commitment to our sustainability objectives, we aim to finance the majority of FCT’s sustainable asset portfolio with green and sustainable financing by 2024. This includes Waterway Point, which is managed by the Frasers Property Group and in which FCT has a 40% stake,” says Richard Ng, CEO of the manager.
“With the completion of the green loan for Waterway Point, the proportion of green loans in FCT’s portfolio is now lifted to approximately 18%. We will continue to work with our partnering banks to achieve our sustainability goals,” he adds.
Units in FCT closed 2 cents higher or 0.9% up at $2.36 on May 18.
