UOL unit secures S$540m sustainability-linked Sora-based loan

UOL Group's U14 wholly-owned subsidiary, UOL Treasury Services, has secured a S$540 million sustainability-linked loan that is pegged to the Singapore Overnight Rate Average (Sora).

The five-year loan will be used for general corporate purposes and to refinance existing loan facilities, the property group said in a statement on Friday.

The loan is being financed by UOB, DBS and OCBC, with each bank extending S$180 million.

If its sustainability targets are met in reducing carbon emissions and energy and water intensities for its commercial properties, UOL will be eligible for an interest rate reduction.

Noting that the loan is UOL's first sustainability-linked and Sora-pegged loan, the group's chief executive officer Kwa Bing Seng said: "We believe integrating green financing is a staple in our sustainability journey and the way forward."

Sora, the new interest rate benchmark, replaces the Swap Offer Rate (SOR) - the benchmark used to price derivatives and business loans in Singapore. It references the USD London Interbank Offered Rate (Libor) in its computation, which will be discontinued in 2023.

UOL has a portfolio of development and investment properties, including hotels and serviced suites across Asia, Oceania, Europe and North America.

Share of UOL were trading at S$6.80 as at 10.13am on Friday, down S$0.06 or 0.9 per cent.

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