The manager of CapitaLand China Trust (CLCT) says it has secured its maiden sustainability-linked loan of $150 million from UOB on Sept 30.
The move makes CLCT the first Singapore-listed real estate investment trust (REIT) to secure a loan linked to the sustainability performance of a China portfolio.
CLCT is Singapore’s largest multi-asset China-focused REIT by market capitalisation and property loan. Its portfolio comprises 11 shopping malls and five business park properties with a gross floor area of around 1.7 million square metres.
Under the terms of the loan, the committed term loan facility incorporates interest rate reductions based on pre-determined sustainability performance targets set out by CLCT.
These targets include maintaining minimum reductions in carbon emission, energy and water usage.
See: CapitaLand China Trust reports 40.1% higher DPU of 4.23 cents in 1H21 on new contributions from acquisitions
The loan will be used for general working capital and corporate funding purposes.
“CLCT is committed to embedding sustainability practices in our business strategies and operations across our portfolio. We strive to take proactive steps to ensure responsible and sustainable growth that dovetails with the Chinese government’s plan for a greener future,” says Tan Tze Wooi, CEO of the manager.
“Under CapitaLand’s 2030 Sustainability Master Plan, CLCT will continue to look into greening our portfolio and contribute to the environmental well-being of the communities where we operate, while delivering long-term economic value to unitholders,” he adds.
“We are pleased to partner CLCTML in the inaugural sustainability-linked loan for CLCT, which marks an important step in our longstanding collaboration with the CapitaLand Group in forging a sustainable future. From green buildings to sustainable cities, such collective efforts will enable us to create a more positive environmental, social and economic impact for the region for the long term,” says Leong Yung Chee, head of group corporate banking at UOB.
Units in CLCT closed 3 cents lower or 2.38% down at $1.23 on Sept 29.
Photo: CLCT
