Mapletree Industrial Trust bags first S$300m sustainability-linked facility from OCBC

MAPLETREE Industrial Trust (MIT) has obtained a S$300 million sustainability-linked facility from OCBC, marking its first foray into sustainable financing, its manager announced on Thursday evening.

The facility has a tenor of up to six years and MIT can use the proceeds for general working capital and corporate funding purposes.

Its manager added that the facility is linked to selected sustainability performance targets. The interest rate on loans drawn from the facility may be reduced on a tiered basis if these targets, as well as other conditions, are met.

Ler Lily, chief financial officer of the manager, said the facility will strengthen the resilience of MIT's capital structure and diversify its funding sources.

Elaine Lam, OCBC's head of global corporate banking said the bank is "committed to addressing the challenges presented by climate change with sustainable financing solutions, which continue to gain momentum due to greater awareness and interest in sustainable projects".

MIT units closed at S$2.80 on Thursday, down S$0.06 or 2.1 per cent, before this announcement.