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Ascendas India Trust secures first $100 mil sustainability-linked loan

Felicia Tan
Felicia Tan4/13/2021 6:21 PM GMT+08  • 2 min read
Ascendas India Trust secures first $100 mil sustainability-linked loan
The Trust is entitled to a reduction in its interest rate when predetermined sustainability performance targets are met.
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Ascendas India Trust has, on April 13, obtained a five-year $100 million unsecured sustainability-linked loan facility from UOB, a first for the Trust.

The Trust says it intends to use the proceeds from the loan for general corporate and working capital requirements. This includes the refinancing of existing borrowings, the redevelopment of properties, acquisitions, capital expenditure or asset enhancement works of the Trust’s properties.

The loan facility features a two-tier incentive mechanism where the Trust is entitled to a reduction in its interest rate when predetermined sustainability performance targets are met.

“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,” says Sanjeev Dasgupta, CEO of the manager.

“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.”

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“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,” he adds.

“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,” says Leong Yung Chee, head of group corporate banking at UOB.

“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,” he adds.

Units in Ascendas India Trust closed 3 cents higher or 2% up at $1.53 on April 13.

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