Mapletree Logistics Trust (MLT), a provider of logistics space in the Asia-Pacific region, has secured its first green loan, a S$200 million (US$150.5 million) green revolving credit facility from OCBC Bank.
Proceeds from the loan will be used to finance the working capital requirements in line with the eligibility criteria of MLT’s newly established green loan framework, which is in line with international principles and guidelines.
OCBC Bank is the green loan advisor and sole lender. MLT’s first foray into sustainable finance, in November 2019, was also supported by OCBC Bank through a S$200 million sustainability-linked loan that was designed to incentivise MLT to expand the renewable energy generation capacity for its portfolio.
“The continued commitment from likeminded corporates like Mapletree Logistics Trust is not just important for sustainable financing’s growth, but also contributes to the larger goal of developing low-carbon, smart cities,” says Elaine Lam, head of global corporate banking, OCBC Bank. “This is in line with our goal to promote greener and more sustainable development outcomes that will play a role in mitigating the adverse effects of climate change for the good of future generations.”
In June of last year, OCBC Bank underscored its commitment to sustainable finance, announcing an ambitious new target of S$25 billion by 2025 for its sustainable finance portfolio. This target was set as the bank had surpassed its original S$10 billion target in the first quarter of 2020 – two years ahead of its 2022 schedule.