GLP takes yen-denominated loan in currency hedge move

GLOBAL Logistic Properties (GLP) on Thursday said it has signed up for a five-year term loan of 20 billion yen (S$227 million), to serve as a hedge to further reduce its long-term currency exposure in Japan.

The loan also provides a lower cost of funding, said Heather Xie, GLP's chief financial officer, in a media statement.

The unsecured loan - with a fixed interest rate of 1.02 per cent per annum - will be used for general corporate funding requirements.

"With global currency markets likely to remain volatile, we will continue to adopt a prudent and proactive approach towards capital management, while maintaining financial stability and flexibility to pursue growth opportunities," said Ms Xie.