UOL Treasury Services, a wholly-owned subsidiary of UOL Group, has secured a $540 million sustainability-linked loan pegged to Singapore Overnight Rate Average (SORA), a first for the Group.
The five-year loan will be used for general corporate purposes and refinancing of existing loan facilities. The loan is being financed by United Overseas Bank (UOB), DBS Bank and Oversea-Chinese Banking Corporation (OCBC), with each bank extending $180 million.
See: CapitaLand China Trust secures $150 mil maiden sustainability loan from UOB
UOL will be eligible for an interest rate reduction if its sustainability targets are met in reducing carbon emissions, energy and water intensities for its commercial properties.
“As one of Singapore’s leading property developers, we are committed to managing our sustainability strategy in a holistic manner that creates value for our stakeholders. This inaugural SORA-based sustainabilitylinked loan highlights our commitment to bring about positive environmental and social impact while achieving business objectives. We believe integrating green financing is a staple in our sustainability journey and the way forward,” says UOL CFO Kwa Bing Seng.
In 2020, UOL secured its first green loan of $120 million to partially finance the development of the 347-room Pan Pacific Orchard into a biophilic hotel. Scheduled to open in the second half of 2022, Pan Pacific Orchard will be the first zero-waste hotel in Singapore. Earlier in March, the group’s property subsidiary, Singapore Land Group, secured its first sustainability-linked and green loans totalling $300 million for partial refinancing of existing facilities and general corporate purposes, and towards a major upgrading of the 48- storey Singapore Land Tower at 50 Raffles Place.
Since 2016, UOL has been a constituent member of iEdge SG ESG Leaders Index. The group also received an “A” rating under MSCI ESG Ratings.
Shares in UOL closed 1 cent or 0.15% higher at $6.86 on Sept 30.
Photo: UOL
