Keppel REIT Fin. Company Pte. Ltd., a wholly-owned subsidiary of Keppel REIT, has obtained a $100 million green loan facility on Dec 23. The loan is guaranteed by the REIT’s trustee, HSBC Institutional Trust Services (Singapore).
Under the terms and conditions of the facility agreement, the REIT is required to pay all of its outstanding loans within 10 business days should its manager cease to be the manager of the REIT. The loans will also be required to be paid within 10 business days should “an entity wholly-owned by Keppel Capital Holdings Pte. Ltd. and, or Keppel Corporation Limited, and an entity wholly-owned by Keppel Capital Holdings Pte. Ltd. and, or Keppel Corporation Limited is not appointed as a replacement or substitute manager of Keppel REIT” in accordance with the terms of the REIT’s trust deed and applicable laws.
Should such an event take place, and should the event cause a “cross default” under the REIT’s other borrowings, the total level of facilities that may be affected is around $2.86 billion.
Units in Keppel REIT closed 0.5 cent higher or 0.56% up at 90 cents on Dec 23.