Link REIT has signed an AUD212 million five-year sustainability-linked term loan with DBS.
This is the REIT’s first sustainability-linked loan following its issuance of USD500 million green bonds in 2016, and HKD4 billion convertible green bonds in 2019.
To incentivise sustainable practices, DBS has structured the loan to incorporate a reduced pricing structure with interest cost savings.
Link REIT will be eligible for the interest savings if it maintains its listing on leading global sustainability indices, and achieves sustainability milestones based on performance in the annual independently assessed Global Real Estate Sustainability Benchmark (GRESB).
The proceeds of the loan will be used for general corporate funding purposes including sustainability initiatives.
Subsequent to the acquisition of 100 Market Street in Sydney announced in December last year, Link REIT is taking on the sustainability-linked loan in AUD to match the currency of this investment.
“As Asia’s largest REIT, Link’s maiden sustainability-linked loan underscores the growing shift towards responsible financing in the region”, said Chew Chong Lim, Managing Director & Global Head of Real Estate, Institutional Banking at DBS Bank.