This is CapitaLand Mall Trust's first sustainability-linked loan, of which proceeds will be used for general corporate purposes.
CapitaLand Mall Trust (CMT) and United Overseas Bank (UOB) will convert a S$200 million ($146 million) revolving credit facility extended to CMT into a sustainability-linked loan, according to a joint press release on Wednesday.
Interest rates for the loan are tied to the company's achievements in the annual Global Real Estate Sustainability Benchmark (GRESB) assessment, which measures the ESG performance of real estate and infrastructure investments across the world, the announcement said.
CMT is the largest retail real estate investment trust (Reit) in Singapore by market capitalization, at S$7.2 billion as at 30 June 2020.
Responsible Growth
The loan follows CMT's first S$200 million green loan, secured on 1 October 2019 from OCBC Bank, to finance or refinance Building and Construction Authority Green Mark-certified properties in its portfolio, which include Funan Mall and Westgate.
«CMT is firmly committed to sustainability and we are pleased to be able to capitalise on our ESG achievements to enhance our financial position, especially during these uncertain times,» Tony Tan, CEO of CapitaLand Mall Trust Management, said.
Leong Yung Chee, UOB's head of corporate banking Singapore, said the loan builds on the bank's efforts to «help more companies in Singapore improve their ESG impact through the use of sustainable financing solutions.»
