This sustainability-linked loan – which is Manulife U.S. Reit’s first – comes on the back of their inaugural green loan which OCBC extended last year after developing their green loan framework.
Manulife U.S. Reit has taken out a $250 million unsecured sustainability-linked loan from DBS and OCBC Bank, with both banks acting as sustainability advisors for the transaction.
The loan incorporates interest rate reductions linked to pre-determined sustainability performance targets, which include efficient use of energy and water, and management of greenhouse gas emissions, in relation to the Reit's nine office properties in the U.S.
Sustainability Progress
The Singapore-listed asset manager with a $2 billion portfolio has four strategic sustainability areas: sustainable properties, external relations, human capital, and ethical corporate behaviour.
Its progress in sustainability was recognized by MSCI ESG, with its rating upgraded from BBB to A in December 2020. Currently, 86.5 percent of its portfolio by gross floor area is green building certified.
Growing Interest
«As the global shift towards lower carbon economies gains momentum, we are seeing growing interest among our institutional clients for more sustainable financing options, with the real estate sector being particularly active,» Tan Su Shan, DBS' group head of transactional banking, said. The bank aims to finance $50 billion in renewable, clean-energy and green projects by 2024,
OCBC has also helped several real estate investment trusts on their sustainability journeys, including Mapletree Logistics Trust, CapitaLand, Hoi Hup Realty, Keppel and Hang Lung, as it targets a $25 billion sustainable finance portfolio by 2025.
