Frasers Property Limited announced that its wholly owned subsidiary, Frasers Property Treasury Pte. Ltd., has obtained a five-year sustainability-linked loan (SLL).
The syndicated term loan facility comprises two tranches – an A$407 million loan and a US$407 million loan, amounting to approximately S$9041 million equivalent.
Proceeds from the SLL will be used to refinance existing loans and for working capital and other general corporate purposes.
“Green and sustainable financing is an integral part of our transition to improve our portfolio’s sustainability performance. We continue to tap the market that has supported our sustainability journey, as we commit to reducing our carbon footprint towards net-zero by 2050,” Loo Choo Leong, group chief financial officer of Frasers Property, said.
A key feature of the SLL is its price reduction structure pegged to the Group’s GRESB2 performance, which enables the Group to enjoy savings in borrowing costs if prespecified GRESB performance targets are met.
A globally recognised industry benchmark, GRESB provides validated environmental, social and governance (ESG) performance data annually on real estate assets and portfolios.
The Group has participated in GRESB assessment from 2015, with all listed and non-listed business units of Frasers Property participating annually for targeted sector benchmarking since 2021.
Notably in 2023’s assessment, the Group saw significant improvement in its overall GRESB scores.
Furthermore, in the Standing Investments assessment, Frasers Property Industrial was recognised as Regional Sector Leader for its existing assets in Australia, while Frasers Property Singapore was named Regional Sector Leader in the Asia’s Diversified – Office/Retail (non-listed) category.
Sustainable financing remains an integral aspect of Frasers Property’s decarbonisation journey, as the Group further diversifies its funding sources with green or sustainability-linked finance.
With this latest SLL, the Group has secured more than S$13 billion of green or sustainability-linked loans and bonds.
Business News Asia