OUE C-REIT acquires first sustainability-linked loan at $540m
The loan targets to improve Singapore's and Shanghai's energy, water efficiency.
OUE C-REIT has obtained its first sustainability-linked loan worth $540m.
This comes from a consortium of five lenders that include OCBC Bank, which also acted as a sustainability advisor for the transaction.
Targets of the loan include the improvement of energy and water efficiencies in relation to the commercial portfolio in Singapore and Shanghai. Also included are interest rate reductions linked to predetermined sustainability performance targets.
This, in turn, would allow OUE C-REIT to enjoy savings in interest costs.
Proceeds from the loan will go towards refinancing existing borrowings and general working capital requirements.
CEO and Executive Director Tan Shu Lin of OUE C-REIT, spoke about how this step is in support of sustainable development.
“We are pleased to secure our first sustainability-linked loan which supports our ongoing efforts to drive the sustainability performance of OUE Commercial REIT. The new loan is a step towards integrating sustainable practices into our operations beyond just managing the environmental impact of OUE Commercial REIT’s properties. We remain committed to our sustainability goals with the aim of translating our sustainability efforts into positive results to deliver long-term growth and value for Unitholders.”