Manulife US REIT (MUST) has obtained a USD250 million unsecured sustainability-linked loan from DBS and OCBC Bank.
This is the REIT’s first sustainability-linked loan, which incorporates interest rate reductions linked to predetermined sustainability performance targets.
This allows the REIT to enjoy savings in borrowing costs as it achieves these targets.
These targets include efficient use of energy and water, and management of greenhouse gas (GHG) emissions, in relation to MUST’s nine office properties in the U.S.
“MUST’s properties are included in our sponsor’s target to reduce 80% of GHG emissions by 2050”, said Jill Smith, CEO of the REIT’s manager.
“In 2021, to further our commitment to reducing our environmental footprint, we are working with our sponsor to develop a model to identify GHG reduction opportunities specific to MUST’s buildings”, she disclosed.
“We will continue to work towards our sustainability goals and translate these efforts into positive financial results to create long-term value for our unitholders”, she added.
Currently, 86.5% of MUST’s portfolio by gross floor area is green building certified by either LEEDTM, ENERGY STAR® or both.
Manulife US REIT was last done on the SGX at USD0.72, which implies a distribution yield of 7.8% according to data compiled on the Singapore REITs table.