Mapletree Commercial Trust obtains S$670 million green loan

Mapletree Anson office building, part of Mapletree Commercial Trust’s portfolioMapletree Anson office building, part of Mapletree Commercial Trust’s portfolio

Mapletree Commercial Trust said Monday it obtained a S$670 million green loan — the trust’s first — to partially finance its acquisition of Mapletree Business City Phase 2 (MBC II) and the property’s common premises.

DBS Bank and OCBC Bank acted as the green loan coordinators, while the other club banks were Bank of China’s Singapore branch, Citibank’s Singapore branch and Sumitomo Mitsui Banking Corp.’s Singapore branch, the trust said in a filing to SGX.

MBC II was designed with environmentally friendly features and has been certified BCA Green Mark Platinum, the filing said.

“Sustainability is an integral part of MCT’s business. Over the years, we have continuously strived to enhance the environmental performance of our portfolio and one focus area is through achieving green building certifications,” Sharon Lim, CEO of Mapletree Commercial Trust Management, the trust’s manager, said in the statement.

“This green club loan attests to our efforts in taking conscious care of the environment,” she added.

Currently, all of Mapletree Commercial Trust’s existing properties have BCA Green Mark certifications, and the trust has committed to ensuring all of its properties will continue to have the certification by incorporating features including higher energy effectiveness and increased resource efficiency, the filing said.

The trust has established a green loan framework, guided by the Green Loan Principles from the Loan Market Associations and the Asia Pacific Loan Market Association, which will outline the criteria for using the green loan proceeds, the filing said. Typically, green loans have interest rates which reset lower as the borrower meets green performance standards.

Tan Su Shan, managing director and group head of institutional banking at DBS, said her bank was pleased to support the trust in enhancing its sustainable agenda.

“We are encouraged by their commitment to sustainability in the property sector and hope that this will also encourage more companies to adopt business strategies that have a positive impact on society,” she said in the statement.

Elaine Lam, head of global corporate banking at OCBC Bank, said green financing was a “natural fit” with the trust’s efforts on green buildings and responsible practices.

In late September, Mapletree Commercial Trust said it entered a deal to acquire Mapletree Business City (Phase 2) from Mapletree Investments’ subsidiary Heliconia Realty for S$1.55 billion.

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