The interior of Funan, a property of the future CapitaLand Integrated Commercial Trust. (Photo: REITsWeek)The interior of Funan, a property of the future CapitaLand Integrated Commercial Trust. (Photo: REITsWeek)

Retail REIT CapitaLand Mall Trust Management has converted a SGD200 million (USD145 million) revolving credit facility with UOB into a sustainability-linked loan.

This is CMT’s first sustainability-linked loan, of which proceeds will be used for general corporate purposes.

Under the terms of the sustainability-linked loan, UOB will offer CMT 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’ ESG efforts in management, environmental performance and building development.

CMT was recognised as the leader in the Asia “Retail – Listed” category in GRESB 2019.

"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”, said Tony Tan, CEO of the REIT’s manager.

“It follows CMT's first SGD200 million green loan secured on 1 October 2019 to finance the Building and Construction Authority Green Mark-certified properties in our portfolio”

“CMT is firmly committed to sustainability and we are pleased to be able to capitalise on our ESG achievements to enhance our financial position, especially during these uncertain times”, he added.

CMT was last done on the Singapore Exchange at SGD1.97, which is close to its book value according to data compiled on the Singapore REITs table.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.