Manulife US Reit obtains US$250m sustainability-linked loan from DBS, OCBC
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
MANULIFE US Real Estate Investment Trust (Manulife US Reit) has obtained a five-year US$250 million unsecured sustainability-linked loan from DBS and OCBC.
The facility is the Reit's first sustainability-linked loan. It will use the loan for general corporate and working capital purposes, including refinancing existing loan facilities in connection with the Reit's green buildings.
These include, but are not limited to, two office buildings located in Washington and California at 1750 Pennsylvania Avenue and 3161 Michelson Drive respectively, the Reit manager said in a bourse filing on Wednesday.
The facility incorporates interest rate reductions linked to predetermined sustainability performance targets. This allows the Reit to save on borrowing costs as it achieves targets, including the efficient use of energy and water and the management of greenhouse gas emissions concerning the Reit's nine office properties in the US.
Jill Smith, chief executive of Manulife US Reit's manager, said the Reit's properties are included in its sponsor's target to reduce 80 per cent of greenhouse gas emissions by 2050.
"In 2021, to further our commitment to reducing our environmental footprint, we are working with our sponsor to develop a model to identify greenhouse gas reduction opportunities specific to Manulife US Reit's buildings," she added.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
DBS and OCBC are the sustainability advisers for the transaction.
DBS group head of institutional banking Tan Su Shan said as the global shift towards lower carbon economies gains momentum, the bank is seeing growing interest among its institutional clients for more sustainable financing options, with the real estate sector being particularly active.
OCBC head of global corporate banking Elaine Lam said Manulife US Reit's maiden sustainability-linked loan comes on the back of the Reit's first green loan extended by OCBC last year. The bank developed the Reit's green loan framework.
Units of Manulife US Reit were trading flat at 71.5 US cents as at 9.18am on Wednesday.
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Copyright SPH Media. All rights reserved.
TRENDING NOW
‘Boring’ is the new black: The stars are aligning for a Singapore stock market revival
Near sell-out launches in March boost developer sales to 1,300 units after four slow months
China pips the US if Asean is forced to choose, but analysts warn against reading it like a sports result
Genting Singapore’s Lim Kok Thay receives S$7.5 million pay package for FY2025
