The manager of Keppel REIT has announced that the REIT has obtained a total of A$300 million ($297.5 million) in green loans from United Overseas Bank (UOB) and BNP Paribas.

The loans, which follow the $655 million in green loan facilities procured by Keppel REIT in 2019, will partially be used towards the funding of the acquisition of Pinnacle Office Park in Sydney.

The acquisition of the park is expected to be completed by 4Q2020.

SEE:Keppel REIT's best-in-class office portfolio keeps it at 'buy'

The green loans, if they had been obtained and fully drawn on Sept 30, would have represented about 26% of Keppel REIT’s attributable share of total borrowings as at Sept 30.

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The green loan facilities from UOB and BNP Paribas adhere to the Keppel REIT Green Loan Framework, which is in line with the Green Loan Principles administered by the Loan Market Association and the Asia Pacific Loan Market Association.

“Keppel REIT places sustainability at the heart of our strategy and is committed to upholding high environmental, social and governance standards as we do our part in mitigating the adverse effects of climate change,” says Paul Tham, CEO of the manager.

“We are committed to strengthen our green funding sources through working together with likeminded partners such as UOB and BNP Paribas, a long time Keppel REIT tenant, who share in our commitment towards responsible growth,” Tham adds.

Shares in Keppel REIT closed flat at $1.05 on Dec 9.