CapitaLand Mall Trust (CMT) has secured its first sustainability-linked loan of S$200 million (US$145.9 million) from United Overseas Bank (UOB), the proceeds of which will be used for general corporate purposes. UOB also acted as the sustainability agent and coordinator for the transaction.
Under the terms of the loan, UOB will offer tiered interest rates on the facility based on CMT’s achievements in the annual GRESB Real Estate assessment. GRESB is a leading environmental, social and governance (ESG) benchmark for real estate and infrastructure companies. CMT was recognized as the leader in the Asia “Retail – Listed” category in GRESB 2019.
The loan agreement follows CMT's first S$200 million green loan secured on October 1 2019 to finance the Building and Construction Authority Green Mark certified properties in its portfolio.
CMT is the largest retail real estate investment trust (Reit) in Singapore with a market capitalization of S$7.2 billion as of June 30 2020. In addition to GRESB, CMT is included in several other indices, including the FTSE4Good Index Series, iEdge SG ESG Indices, FTSE EPRA Nareit Global Real Estate Index Series, and FTSE Straits Times Index.
"The sustainability-linked loan from UOB marks another milestone in CMT's journey to continually strengthen our ESG standards while creating long-term value for our stakeholders,” says Tony Tan, chief executive officer of CMT Management Limited, which manages the real estate investment trust. “CMT is firmly committed to sustainability and we are pleased to be able to capitalize on our ESG achievements to enhance our financial position, especially during these uncertain times.”
Comments Leong Yung Chee, UOB’s head of corporate banking in Singapore: “This sustainability-linked loan demonstrates how UOB and CMT are working together to drive responsible growth for the benefit of our community. It also builds on our efforts to help more companies in Singapore improve their ESG impact through the use of sustainable financing solutions.”