CapitaLand China Trust gets first sustainability-tied loan of S$150M from UOB

The CapitaMall Wangjing mall in Beijing, part of the CapitaLand Retail China Trust portfolio. Credit: CapitaLand Retail China TrustThe CapitaMall Wangjing mall in Beijing, part of the CapitaLand Retail China Trust portfolio. Credit: CapitaLand Retail China Trust

UOB has provided CapitaLand China Trust’s first sustainability-linked loan, a committed term loan facility of S$150 million, which offers interest-rate reductions based on sustainability performance targets for the trust’s property portfolio, the trust said in a filing to SGX Thursday.

The sustainability targets include maintaining minimum reductions in carbon emissions, energy and water usage, the filing said.

CapitaLand China Trust, or CLCT, said the loan proceeds would be used for general working capital and corporate funding needs, which could include financing or refinancing investments.

“As part of the CapitaLand Group, CLCT is committed to embedding sustainability practices in our business strategies and operations across our portfolio. We strive to take proactive steps to ensure responsible and sustainable growth that dovetails with the Chinese government’s plan for a greener future,” Tan Tze Wooi, CEO of CLCT’s manager, CapitaLand China Trust Management Ltd., said in the statement.

Tan noted the trust reduced the portfolio’s water usage by 39 percent in 2020, and lowered carbon emissions by 46.2 percent and energy usage by 39.8 percent.

CLCT’s portfolio holds 11 shopping malls and five business parks, making it Singapore’s largest multi-asset China REIT by market capitalization and property value, the filing said.