![Ascendas Reit property at 510 Townsend Street in San Francisco](https://www.theasset.com/storage/Image/2021/May/1620875875Image2_510_Townsend_Street_SanFrancisco.jpg)
Ascendas Real Estate Investment Trust (Ascendas Reit) has entered into a green interest rate swap (IRS) agreement with Scotiabank, which will be used to hedge an existing US$150 million green loan with the lender. The solution aims to support the reit’s commitment to meet its key green targets by the swap maturity date.
Among these green targets is for its two US office properties, located at 505 Brannan Street and 510 Townsend Street in San Francisco, to maintain their LEED Platinum (or equivalent) classifications. This is the best-in-class environmental certification by the leading building standards organization in the United States.
Ascendas Reits also aims to increase the total number of green certified properties within its portfolio by a pre-determined figure and achieve a minimum certification level for a target number of properties.
William Tay, executive director and chief executive officer of Ascendas Funds Management, the reit’s manager, says: “We are always on the lookout for initiatives to align our financing needs with our sustainability objectives. This green interest rate swap with Scotiabank comes with an ambitious target to demonstrate our commitment to own a greener and more sustainable property portfolio.”
Walter Tas, Scotiabank’s managing director and head of Asia-Pacific, adds: “We are committed to supporting our clients in their efforts to build a sustainable environment for future generations and advance the low-carbon transition through innovative green solutions.”