CapitaLand Mall Trust secures first sustainability-linked loan

CAPITALAND Mall Trust (CMT) has secured its first sustainability-linked loan of S$200 million from UOB, the CMT management announced on Tuesday.

Under the loan, which was converted from a revolving credit facility, UOB will offer CMT tiered interest rates based on the trust's achievements in the annual GRESB Real Estate assessment. GRESB is an environmental, social and governance (ESG) benchmark for real estate and infrastructure companies' ESG efforts in management, environmental performance and building development.

Said Tony Tan, CEO of CMT's trust manager: "The sustainability-linked loan from UOB marks another milestone in CMT's journey to continually strengthen our ESG standards while creating long-term value for our stakeholders."

Noting that the sustainability-linked loan follows a S$200 million green loan secured last October to finance CMT's Green Mark-certified properties, Mr Tan added: "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."

Leong Yung Chee, head of corporate banking Singapore at UOB, said that the bank is committed to collaborating with its clients to advocate sustainable development.

"This sustainability-linked loan demonstrates how UOB and CMT are working together to drive responsible growth for the benefit of our community. It also builds on our efforts to help more companies in Singapore improve their ESG impact through the use of sustainable financing solutions," he said.

CapitaLand Mall Trust units closed at S$1.97 on Tuesday, down one Singapore cent or 0.51 per cent.