CapitaLand Mall Trust obtains S$200 million green loan

CapitaLand Integrated Commercial Trust building in Singapore’s Bugis neighborhood.CapitaLand Integrated Commercial Trust building in Singapore’s Bugis neighborhood.

CapitaLand Mall Trust obtained a S$200 million five-year green loan from OCBC Bank, marking its first foray into green financing, with the proceeds earmarked to finance or refinance properties with the BCA Green Mark certification, the REIT said Tuesday.

“As the largest retail REIT in Singapore, we are committed to delivering long-term value to our stakeholders while driving positive change in
the community to serve the needs of shoppers in this and future generations,” Tony Tan, CEO of the REIT’s manager, CapitaLand Mall Trust Management (CMTML), said in a statement filed to SGX.

“The green loan attests to CMT’s green initiatives and supports our efforts in creating a more sustainable environment. It allows us to diversify our funding sources, with the flexibility to deploy the proceeds to the majority of CMT’s properties that are already certified green,” Tan added.

CMTML has established a green loan framework based on the Green Loan Principles from the Loan Market Association and the Asia Pacific Loan Market Association, the filing said.

The trust has committed to achieving BCA Green Mark certification for all of its properties by 2020, with 14 properties in its 15-property portfolio already certified at BCA Green Mark Gold or above, CapitaLand Mall Trust said.

Elaine Lam, head of global corporate banking at OCBC Bank said the trust’s first green loan demonstrated CapitaLand Mall Trust’s commitment to sustainability.

“In 2019, we have seen an exponential growth in the sustainable finance sector in Singapore, and we are now only entering the early phase of a trend which will persist for years to come. We are very excited by the prospects of the sector,” she said in the statement.

CapitaLand Mall Trust’s units are included in several sustainability indexes, including the FTSE4Good Developed Index and STOXX Global ESG Leaders, the filing said.

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