Lendlease Global Commercial REIT (LREIT) has obtained an SGD100 million unsecured sustainability-linked term loan facility.
Proceeds from the loan will be used mainly to refinance an existing loan that will be due in the financial year ended 2023.
The new facility 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.
In February 2022, LREIT established SGD860 million sustainability-linked term loan facilities, which is the largest amongst REITs in Singapore.
“This latest sustainability-linked loan marks the continuation of LREIT’s sustainability journey, with sustainable financing now accounting for more than 60% of total borrowings, increasing from 56% previously”, said Kelvin Chow, CEO of LREIT’s manager.
LREIT’s assets bear green certifications such as the BCA Green Mark Platinum Award.
Additionally, the REIT’s Grade A office asset, Sky Complex, also features an efficient energy profile.
LREIT was last done on the Singapore Exchange at SGD0.825, which presently implies a distribution yield of 5.82% according to data on the Singapore REITs table.