CapitaLand Mall Trust Management Limited (CMTML), the manager of CapitaLand Mall Trust (CMT), and United Overseas Bank Limited (UOB) are pleased to announce that UOB has converted a S$200 million revolving credit facility extended to CMT into a sustainability-linked loan. This is CMT’s first sustainability-linked loan, of which proceeds will be used for general corporate purposes. UOB also acted as the sustainability agent and coordinator1 for this transaction.
Under the terms of the sustainability-linked loan, UOB will offer CMT tiered interest rates on the facility based on CMT’s achievements in the annual GRESB2 Real Estate assessment. GRESB is a leading environmental, social and governance (ESG) benchmark for real estate and infrastructure companies’ ESG efforts in management, environmental performance and building development. CMT was recognised as the leader in the Asia “Retail – Listed” category in GRESB 2019.
Mr Tony Tan, CEO of CMTML, said: "The sustainability-linked loan from UOB marks another milestone in CMT's journey to continually strengthen our ESG standards while creating long-term value for our stakeholders. It follows CMT's first S$200 million green loan secured on 1 October 2019 to finance the Building and Construction Authority Green Mark-certified properties in our portfolio. CMT is firmly committed to sustainability and we are pleased to be able to capitalise on our ESG achievements to enhance our financial position, especially during these uncertain times.”
Mr Leong Yung Chee, Head of Corporate Banking Singapore, UOB, said: “At UOB, we are committed to collaborating with our clients to advocate sustainable development. This sustainability-linked loan demonstrates how UOB and CMT are working together to drive responsible growth for the benefit of our community. It also builds on our efforts to help more companies in Singapore improve their ESG impact through the use of sustainable financing solutions.”
CMT is the largest retail real estate investment trust in Singapore by market capitalisation. In addition to GRESB, CMT is included in several indices, including the FTSE4Good Index Series (FTSE4Good), iEdge SG ESG Indices, FTSE EPRA Nareit Global Real Estate Index Series and FTSE Straits Times Index.
1 A sustainability agent and coordinator works closely with clients to help measure, improve and maintain their sustainability performance.
2 For more information on GRESB, please refer to: https://gresb.com.
