OUE C-REIT subsidiary clinches S$430m green loan for refinancing

The proportion of green loans to the REIT’s total borrowings increased to 69.6%.

OUE Commercial REIT (OUE C-REIT)’s indirect subsidiary OUB Centre Limited has obtained an unsecured sustainability-linked loan (SLL) of S$430m from five banks: OCBC, Maybank Singapore, ICBC, The Bank of East Asia, and Qatar National Bank.

The funds will be used for the refinancing of existing borrowings and general corporate purposes, OUE C-REIT said in an SGX filing.

OCBC is the sustainability coordinator for the transaction.

With this, OUB Centre Limited has no further refinancing requirements until 2025.

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The proportion of SLLs has also increased to 69.6% of OUE C-REIT's total borrowings as of 31 March, one of the highest percentages amongst S-REITs.

This is OUE C-REIT’s third SLL. It incorporates interest rate reductions linked to predetermined sustainability performance targets, which are in line with the REIT’s long-term targets to reduce energy and water intensities by 25% below 2017’s level by 2030.