Frasers Property Limited secures A$500-million green loan
Loan comprising A$500-million five-year green loan tranche and A$250-million five-year tranche will be used to refinance existing loans regarding two green properties
Frasers Property Limited (Frasers Property, and together with its subsidiaries, the group) has, through its wholly-owned subsidiary Frasers Property Treasury Pte. Ltd., secured a A$750 million (US$525.5 million) term loan comprising a A$500 million five-year green loan tranche under the LMA/APLMA Green Loan Principles and a A$250 million five-year tranche.
The proceeds from the green loan tranche will be used to refinance existing loans in relation to two green properties – Alexandra Point and 51 Cuppage Road in Singapore. To incentivize sustainable practices, the green loan has a reducing pricing structure with interest cost savings from the second year onwards if the green properties maintain the requisite green standards.
Loo Choo Leong, group chief financial officer of Frasers Property, comments, “This green loan is yet another step in our green financing journey, which commenced with Southeast Asia’s first syndicated green loan obtained by Frasers Property’s indirect wholly-owned subsidiary in September 2018.”
This is the group’s fifth green loan. Prior to this, Frasers Logistics & Industrial Trust had undertaken a A$170 million green loan in June 2019 and Frasers Property Australia had secured a A$600 million green loan (the first corporate syndicated green loan in Australia) in March 2019. Frasers Property had previously undertaken a S$785 million (US$577 million) green club loan in March 2019 and a S$1.2 billion syndicated green loan in September 2018.
Alexandra Point is a 24-storey office building with a BCA Green Mark Platinum rating and 51 Cuppage Road is a 10-storey office building with a BCA Green Mark Gold rating. Both buildings are fitted with efficient lighting, water and air-conditioning systems. Alexandra Point has been recognized as one of the first green buildings in Singapore. It has won numerous accolades, including the prestigious SGBC-BCA Sustainability Awards 2017 for Sustainable Performance & Design (Commercial).
The green loan was issued under Frasers Property’s Green Loan Framework, established under the Green Loan Principles. The framework details clear guidelines on how Frasers Property will evaluate and select eligible green projects based on the group’s sustainability objectives, as well as manage the net proceeds from green loans, including reporting on the manner in which the net proceeds are allocated.
Social Media Links (This section can be seen in office only):
Twitter : https://www.theasset.com/article-single.php?id=38224&social=twitter
Linkedin : https://www.theasset.com/article-single.php?id=38224&social=linkedin
Facebook : https://www.theasset.com/article-single.php?id=38224&social=facebook