CapitaLand China Trust obtains maiden S$150m sustainability-linked loan from UOB

Vivienne Tay

Published Thu, Sep 30, 2021 · 08:16 AM

CAPITALAND China Trust (CLCT) has obtained its maiden S$150 million sustainability-linked loan from UOB, its manager said on Thursday.

The lender will offer the China-focused real estate investment trust (Reit) a committed term loan facility that incorporates interest rate reductions based on pre-determined sustainability performance targets for the Reit's properties.

These targets include minimum reductions in carbon emission, energy and water usage.

Proceeds from the loan will be used for general working capital and corporate funding requirements, which include financing or refinancing investments.

Tan Tze Wooi, chief executive of the manager, said in 2020, the Reit reduced its portfolio's water usage by 39 per cent, carbon emissions by 46.2 per cent and energy usage by 39.8 per cent, compared with levels in 2008.

CLCT's portfolio comprises 11 shopping malls and five business park properties with a total gross floor area of about 1.7 million square metres. They are located across 10 Chinese cities including Beijing, Shanghai, Guangzhou, Suzhou and Hangzhou.