The loan from OCBC, which is among the largest sustainability-linked loans for a Singapore real estate developer, will be used for general working capital and corporate funding purposes.
OCBC Bank has issued a sustainability-linked loan of €200 million ($226.4 million) to Mapletree Treasury Services, a wholly owned subsidiary of Mapletree Investments, the bank announced in a media statement.
The green loan is Mapletree's first, and the real estate development and property management firm's fourth sustainable transaction with OCBC. The facility is linked to key environmental, social and governance (ESG) initiatives – if pre-set targets are met, the interest rate will be reduced on a tiered basis, the announcement said.
Mapletree has committed to incorporating sustainability throughout its operations, and has rolled out initiatives to improve the energy and water efficiencies of its properties, many of which have secured the Building and Construction Authority's Green Mark Award.
Sustainable Financing Gains Momentum
Over the past year, OCBC has helped several real estate investment trusts on their sustainability journeys, including Capitaland, Hoi Hup Realty, Keppel and Hang Lung.
According to the bank, it made more than S$5 billion in sustainable financing commitments and participated in more than 20 green loans and sustainability-linked loan transactions in 2019, as it seeks to build a S$10 billion ($7.42 billion) sustainable finance portfolio by 2022.
