Hong Kong Exchange-listed ESR Cayman announced that it had secured its first sustainability-linked loan (SLL) of US$700 million, with an option to upsize it to US$1 billion, on November 1, 2021.
On the heels of the initial announcement, it has completed the incremental upsize portion of US$300 million in less than one month backed by the addition of new mandated lead arrangers, including Mizuho Bank, Natixis Hong Kong Branch, The Hongkong and Shanghai Banking Corporation (HSBC), and Malayan Banking Berhad (Maybank).
The US$300 million incremental facility consists of a three-year tranche of US$150 million at Libor plus 2.25% and a five-year tranche of US$150 million at Libor plus 2.75%. It shares the same financing structure and interest rate with the initial tranche.
The SLL includes a tiered mechanism of interest reduction designed to incentivise the group to achieve sustainability targets. Proceeds raised from the SLL will be used for the group’s refinancing of existing borrowings, working capital requirements and for general corporate purposes.
Jeffrey Perlman, chairman of ESR, said the upsize of this SLL has given ESR Cayman "further momentum" to drive its long-standing commitment to ESG.
"As ESR emerges to become APAC’s largest real asset manager following the planned acquisition of ARA, the range of stakeholders and local communities we can impact will rapidly grow and expand."
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"As a part of this journey, we are committed to ensuring the Group continues to integrate ESG into every aspect of its business, from corporate financing and sustainable growth to innovative property development and stakeholder engagement.”
Photo credit: ESR Cayman
