The manager of Suntec REIT has announced that the REIT’s trustee, HSBC Institutional Trust Services (Singapore), has entered into a $400 million sustainability-linked facility agreement with various banks on Dec 20.
The loan was made to refinance part of the REIT’s outstanding borrowings and for general working capital purposes.
The aggregate level of facilities which may be affected by a breach, which includes facilities which will be affected as a result of cross defaults, is around $4.51 billion as at Dec 20 should the REIT manager cease to be an affiliate of ARA Asset Management. Should the REIT manager cease to be the manager of Suntec REIT and the replacement or substitute manager is not appointed according to the terms of the trust deed, as well as other conditions, it could be constituted as an event of default as well.
Units in Suntec REIT closed 1 cent lower or 0.73% down at $1.37 on Dec 20.
