Mapletree Investments secures sustainability-linked loan
Proceeds of the US$227 million loan will be used for general working capital and corporate funding purposes
MAPLETREE Treasury Services Limited, a wholly-owned subsidiary of Mapletree Investments, has secured its inaugural sustainability-linked loan of 200 million euros (US$227.27 million) from OCBC Bank. This is one of the largest sustainability-linked loans for a Singapore real estate developer and represents Mapletree Investments’ inaugural sustainability-linked loan.
The proceeds of the loan, announced on March 9, will be used for general working capital and corporate funding purposes. The facility is designed to link with key environmental, social and governance (ESG) initiatives that Mapletree focuses on. If the pre-set ESG targets are met, the interest rate on the facility will be subsequently reduced on a tiered basis. Mapletree will report its actual ESG performance on an annual basis.
The loan is the fourth sustainable finance transaction of the Mapletree Group with OCBC, which also demonstrates Mapletree’s leadership in the development of green financing and its commitment to incorporating sustainability throughout its business operations.
In the last few years, Mapletree has integrated sustainability across its value chain, starting from the architectural design stage, to the construction stage, and finally in the building maintenance and property management stage. This was in addition to rolling out several initiatives to improve both the energy and water efficiencies of its major commercial assets.
These sustainability efforts have led to many green mark awards by Building and Construction Authority of Singapore and the Leadership in Energy and Environment Design certifications by the US Green Building Council.
OCBC head of global corporate banking Elaine Lam says Mapletree, going forward, can inspire more peers to follow suit as sustainable financing continues to gain momentum in the region.
The latest loan illustrates how OCBC shares Mapletree’s commitment to sustainability. The bank strives to build a sustainable finance portfolio of S$10 billion (US$7.2 billion) by 2022. In 2019 alone, OCBC made more than S$5 billion in sustainable financing commitments and participated in more than 20 green loans and sustainability-linked loan transactions. It has also financed renewable energy projects including solar, onshore wind and offshore wind projects in Taiwan, China, the UK, Australia and Malaysia.
Recognizing the urgency of fighting climate change, OCBC was likewise the first bank in Southeast Asia to stop financing new coal-fired power plants, which it announced in 2019.
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