Keppel REIT has obtained a total of AUD300 million (USD226 million) in green loans from United Overseas Bank Limited (UOB) and BNP Paribas.
These latest green loans follow the SGD655 million in green loan facilities obtained by Keppel REIT in 2019.
Proceeds from the loans will be partially deployed towards the acquisition of Pinnacle Office Park, a freehold Grade A office asset in Sydney.
The acquisition is expected to be completed in 4Q 2020.
Assuming all green loan facilities were obtained and fully drawn on 30 September 2020, green loans would have represented approximately 26% of Keppel REIT’s attributable share of total borrowings as of 30 September 2020.
“Keppel REIT places sustainability at the heart of our strategy and is committed to upholding high environmental, social and governance standards as we do our part in mitigating the adverse effects of climate change”, said Paul Tham, CEO of Keppel REIT’s manager.
Further details of Keppel REIT’s green loan can be found here.
Keppel REIT was last done on the SGX at SGD1.05, which implies a distribution yield of 5.2% according to data compiled on the Singapore REITs table.