DBS inks A$212m sustainability-linked loan with HK listed REIT
(25 March 2020 – Asia) DBS and Hong Kong-listed Link Real Estate Investment Trust (Link REIT) have signed a S$177.7 million five-year sustainability-linked term loan, the first by a REIT in Asia to be linked to Global Real Estate Sustainability Benchmark (GRESB) performance.
The loan proceeds will be used for general corporate funding purposes including sustainability initiatives.
DBS has structured the loan to incorporate a reduced pricing structure with interest cost savings. By maintaining its listing on leading global sustainability indices and achieving sustainability milestones based on performance in the annual independently assessed GRESB, Link will be eligible for the interest savings.
“As we pursue our medium-term goals outlined in Vision 2025 and to create value for our stakeholders and the communities we serve, we are pleased to ensure the integration of sustainability best practices into our daily operations by introducing our very first sustainability-linked loan with our key relationship bank, DBS” Link’s Chief Executive Officer George Hongchoy commented.
“As Asia’s largest REIT, Link’s maiden sustainability-linked loan underscores the growing shift towards responsible financing in the region. We believe financing solutions with features that incentivise sustainable development enable corporates to generate long-term value while contributing to the United Nations Sustainable Development Goals” stated DBS Institutional Banking Managing Director & Global Head of Real Estate, Chew Chong Lim.