Cromwell European REIT (CEREIT) has secured an EUR180 million sustainability-linked term loan facility with HSBC, OCBC, QNB, and RHB.
HSBC and OCBC are also the sustainability advisors for the facility that includes an accordion feature, which allows it to be increased up to EUR230 million.
The facility has a final maturity date of four years from the date of its first utilisation.
The proceeds from the facility are intended to be used to repay the majority of the outstanding borrowings under the REIT’s existing debt facility due in November 2023.
CEREIT will also use part of the proceeds to repay drawn amounts under CEREIT’s revolving credit facility of EUR200 million that is due to expire in 2024.
The new facility has three sustainability-linked key performance indicators (KPIs) that are set and measured on an annual basis over a four-year period.
These KPIs are namely an increase in its GRESB score, number of green building certifications achieved, and percentage increase in the number of green clauses over the total number of leases.
“Completing this market-first sustainability-linked term loan in the current macro environment is a testament to CEREIT’s robust corporate governance, portfolio resilience, track record and strong Singapore capital market partnerships”, said Shane Hagan, CFO of CEREIT’s manager.
CEREIT was last done on the Singapore Exchange at EUR1.66, which presently implies a distribution yield of 9.94% according to data on the Singapore REITs table.