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ESR Secures $2.5b Sustainability-linked Loan

Singapore Business Review ·  Dec 12 11:14

This marks the company's 11th sustainability-linked loan.

ESR Group has successfully secured a $2.5b sustainability-linked term loan and revolving credit facilities.

This marks the company's 11th sustainability-linked loan, totalling nearly $7b.

The loan's interest rate is tied to two key performance indicators (KPIs), namely increasing solar power capacity and improving sustainability certifications for its properties. By achieving these goals, ESR can reduce borrowing costs.

"As part of our ESG 2030 Roadmap targets under the Property Portfolio pillar, we aim to set up 1,000 MW of solar power capacity on the rooftop of our assets and attain sustainable building certifications and ratings for 50% of the Group's portfolio," said Ivan Lim, ESR Group Chief Financial Officer.

ESR's strong ESG performance is recognised by global benchmarks like GRESB and ISS QualityScore. The company has been recognised for its enhanced ESG oversight, policies, systems, processes, and sustainability performance.

The loan was led by a consortium of banks, including HSBC, Mizuho, MUFG, OCBC, UOB, and CIMB.

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