Mapletree Logistics Trust obtained a S$200 million sustainability-linked loan from OCBC, the trust’s first foray into sustainable financing, the trust said in a filing to SGX Thursday.
The six-year committed revolving credit facility, which will be used for general working capital, is designed to reference Mapletree Logistics Trust’s rooftop solar installation program in Asia Pacific, the filing said.
“Under the facility, MLT will report its progress on an annual basis, and will be eligible for a discount on the interest rate charged on the loan if the target is met,” the trust said. “This facility demonstrates MLT’s continual efforts to embed sustainability into its business while also achieving financial cost benefit, and it marks the first Singapore-listed real estate investment trust (REIT) linking its renewable energy generation target to financing.”
Mapletree Logistics Trust said its rooftop solar installations are on six facilities in Japan and one in Singapore, with a total of 6.3 mega-watt peak, and it plans to install at least eight other rooftop solar panels at properties in Singapore and pilot installations in other markets, such as Australia and China.
“As a leading provider of logistics space in Asia Pacific, MLT is committed to reducing the environmental impact of its portfolio through initiatives that focuses on improving energy efficiency as well as increasing renewable energy generation,” the filing said.
“The manager will continue to review opportunities within its portfolio to further its sustainability efforts and reduce carbon emissions,” the filing added.
