Mapletree Investments gets 200m euro sustainability-linked loan
If pre-set ESG targets are met, the interest rate on the OCBC loan will be subsequently reduced on a tiered basis
Vivienne Tay
Singapore
MAPLETREE Investments has obtained a 200 million euro (S$310 million) sustainability-linked loan from OCBC Bank, which will be used for general working capital and corporate funding purposes.
The loan - which the bank said is one of the largest sustainability-linked loans for Singapore real estate developers - is linked to key environmental, social and governance (ESG) initiatives that Mapletree focuses on.
If pre-set ESG targets are met, the interest rate on the loan will be subsequently reduced on a tiered basis.
Mapletree will report its actual ESG performance on an annual basis, OCBC announced in a news release on Monday.
Mapletree Investments is the sponsor of four Singapore-listed real estate investment trusts (Reits).
They are Mapletree Logistics Trust, Mapletree Industrial Trust, Mapletree Commercial Trust and Mapletree North Asia Commercial Trust.
The real estate development and investment company also manages six private equity real estate funds.
OCBC noted that the latest sustainability-linked loan is Mapletree Group's fourth sustainable finance transaction with the lender.
Elaine Lam, the head of global corporate banking at OCBC Bank, said the bank last year helped several Reits managed by Mapletree to embark on their sustainable finance journey.
"Looking forward, we believe they can inspire more peers to follow suit as sustainable financing continues to gain momentum in the region," she said.
