Fortune REIT property, Fortune Metropolis. (Photo: Google Maps)

Hong Kong-listed Fortune REIT has secured a five-year sustainability-linked term facility aggregating HKD1 billion (USD128 million) with DBS Bank.

It is Fortune REIT’s first sustainability-linked loan, which makes the REIT eligible for interest rate savings upon achieving pre- determined environmental, social and governance targets.

These targets place emphasis on greenhouse gas emission, energy consumption and waste management of the REIT’s business in Hong Kong.

Proceeds of the loan will be used to refinance the existing club facility and for general corporate funding purpose, including embedding long-term sustainability performance in the Fortune REIT’s asset enhancement initiatives.

Fortune REIT is listed on the Hang Seng Corporate Sustainability Index.

It was last done on the Hong Kong Stock Exchange at HKD6.57.

mm

By Shariffa Al-Habshee

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