Waterway Point owner gets maiden S$589m green loan

SAPPHIRE Star Trust, the owner of Waterway Point, has obtained its maiden green loan of S$589 million from Sumitomo Mitsui Banking Corporation Singapore Branch and United Overseas Bank.

The two banks are the mandated lead arrangers and original lenders, as well as green loan coordinators for the loan.

The loan will be used to refinance existing borrowings, as well as for working capital and general corporate funding requirements of Sapphire Star Trust in relation to Waterway Point, reported Frasers Centrepoint Trust (FCT) on Tuesday. FCT owns a 40 per cent interest in Sapphire Star Trust.

FCT said its share in this loan is proportionate to its 40 per cent stake in Sapphire Star Trust. The loan will enjoy a reduction in margin on its second year if Waterway Point retains its current Green Mark GoldPlus certification status issued by the Building and Construction Authority (BCA).

The loan, which constitutes a five-year Singapore Overnight Rate Average (Sora)-based secured term loan and an uncommitted revolving loan facility arranged by both banks, is structured as a green loan based on the Green Loan Principles issued by the Loan Market Association, the Asia Pacific Loan Market Association, and the Loan Syndications and Trading Association.

Richard Ng, chief executive of FCT's manager, said the completion of the green loan for Waterway Point has lifted the proportion of green loans in FCT's portfolio to 18 per cent, and the trust will continue to work with partnering banks to achieve its sustainability goals

"FCT views sustainability as an integral part of its business strategy. As a testament of the manager's commitment to our sustainability objectives, we aim to finance the majority of FCT's sustainable asset portfolio with green and sustainable financing by 2024," he added.

Units in FCT closed at S$2.36 on Tuesday, up 0.9 per cent or S$0.02.