It comprises a $476.59m five-year green loan tranche and a $238.30m five-year tranche.
Frasers Property, through its wholly-owned subsidiary Frasers Property Treasury, has secured a $714.89m (A$750m) term loan, an announcement revealed.
The term loan comprises a $476.59m (A$500m) five-year green loan tranche under the LMA/APLMA Green Loan Principles and a $238.30m (A$250m) five-year tranche.
The proceeds from the green loan tranche will be used to refinance existing loans in relation to two green properties, Alexandra Point and 51 Cuppage Road. To incentivise sustainable practices, the green loan has a reducing pricing structure with interest cost savings from the second year onwards if the green properties maintain the requisite green standards, Frasers noted.
Alexandra Point is a 24-storey office building with a BCA Green Mark Platinum rating, and 51 Cuppage Road is a 10-storey office building with a BCA Green Mark Gold rating. Both buildings are fitted with efficient lighting, water and air-conditioning systems.
According to Loo Choo Leong, the group’s CFO, the green loan is yet another step in the firm’s green financing journey, which commenced with what is said to be Southeast Asia’s first syndicated green loan obtained by Frasers Property’s indirect wholly-owned subsidiary in September 2018.
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