Ascendas India Trust Obtains Maiden S$100 Mn Sustainability Linked Fund from UOB

Ascendas Property Fund Trustee, a   Trustee-Manager of Ascendas India Trust has announced that it has successfully secured a five-year S$100 million unsecured sustainability-linked loan facility from UOB.

Sanjeev Dasgupta, Chief Executive Officer says, “a-iTrust considers sustainability as a key driver of its value creation strategy. This is implemented through various initiatives towards the environmental and social well-being of the communities where it operates. Securing the Trust’s maiden sustainability-linked loan facility is testament to the Trust’s effort in minimising its environmental footprint. The Trust is committed to continuously increase the proportion of its properties which are certified “Gold” or “Platinum”, amidst the Trust’s plans to grow its portfolio. In doing so, it is also able to achieve a lower cost of borrowing for the Trust. This is also in line with CapitaLand Group’s overall green building rating targets of achieving green certifications for all new and existing buildings in its portfolio by 2030.”

This is a-iTrust’s first sustainability-linked loan. The Trust plans to utilise the proceeds from the loan for general corporate and working capital requirements that include the redevelopment of properties, refinancing existing borrowings, acquisitions, capital expenditure or asset enhancement works of the Trust’s properties.

The facility offers a 2-tier incentive mechanism where a-iTrust is entitled to an interest rate reduction when predetermined sustainability performance targets are accomplised.

Leong Yung Chee, Head of Group Corporate Banking, UOB says, “At UOB, we are focused on collaborating with our clients on their sustainability goals. In 2020, we provided the largest sustainability-linked bilateral loan in Singapore’s real estate sector to CapitaLand Group. Today, we continue to build on that relationship through our support of a-iTrust, a leading listed property trust managed by the Group. The sustainability-linked loan to a-iTrust is tied to the Environmental, Social and Governance performance of a portfolio of buildings in India, making it the first of its kind in Singapore. This marks another milestone in the way we work with our clients to help advance their sustainability goals and we look forward to our continued collaboration."

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