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Keppel Reit unit secures S$505m secured green loan facility
KEPPEL Reit's nearly 80 per cent owned subsidiary Ocean Properties has obtained a secured green loan facility worth S$505 million.
One of the terms and conditions is that the lender may give notice to Ocean Properties as a borrower to prepay any outstanding loans if the manager ceases to be a directly or indirectly wholly-owned subsidiary of Keppel Corporation, according to Keppel Reit in a bourse filing on Tuesday.
If such an event occurs and if it were to cause a cross default under other borrowings of the Keppel Reit group, the aggregate level of facilities that may be affected is estimated to be as at Tuesday S$3.4 billion, excluding interest and fees.
Paul Tham, chief executive of the manager, said: "As part of our long-term strategy, we are continually looking for opportunities to improve the sustainability of our portfolio. This is more than just ensuring our office buildings uphold high environmental standards, but also extends to how we look at our financing. The green loan facility reflects our commitment to sustainability, for the benefit of all our stakeholders."
Keppel Reit closed at S$1.25, up one Singapore cent or 0.81 per cent before the announcement.