Companies & Markets

OUE C-Reit unit obtains S$430 million sustainability-linked loan

Sharanya Pillai

Published Wed, Jun 14, 2023 · 07:51 PM

OUB Centre, an indirect subsidiary of OUE Commercial Reit : TS0U 0%, has obtained an unsecured sustainability-linked loan (SLL) of S$430 million, its manager announced in a Wednesday (June 14) bourse filing.

This is OUE C-Reit’s third SLL. It was obtained from new and existing lenders – OCBC Bank, Maybank Singapore, the Industrial and Commercial Bank of China, The Bank of East Asia and Qatar National Bank. OCBC was the sustainability coordinator for the transaction.

The proceeds will be used for refinancing existing borrowings and general corporate purposes. With this facility, the Reit has no further refinancing requirements until 2025.

SLLs comprised 69.6 per cent of OUE C-Reit’s total borrowings as at end-March. The weighted average term of debt as at end-March rose to 3.2 years from 2.7 years on a pro forma basis.

The latest SLL incorporates interest-rate reductions linked to sustainability performance targets, which OUE C-Reit said are aligned with its long-term targets to reduce energy and water intensities by 25 per cent from 2017 levels, by 2030.

Han Khim Siew, the Reit manager’s CEO, said: “With the continued support from our lenders, OUE C-Reit has no near-term refinancing risk, with the next debt maturity two years away in 2025. This is in line with our prudent and proactive capital management approach to diversify funding sources, increase financial flexibility and optimise borrowing costs.”