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Manulife US REIT obtains US$250 million sustainability-linked loan from DBS and OCBC

Atiqah Mokhtar
Atiqah Mokhtar3/24/2021 08:47 AM GMT+08  • 2 min read
Manulife US REIT obtains US$250 million sustainability-linked loan from DBS and OCBC
The facility incorporates interest rate reductions linked to sustainability performance targets.
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Manulife US REIT (MUST) has obtained a US$250 million ($335.7 million) unsecured sustainability-linked loan from DBS and OCBC Bank, with both banks acting as sustainability advisors for the transaction.

The unsecured five-year sustainability-linked loan facility incorporates interest rate reductions linked to sustainability performance targets, including efficient use of energy and water and management of greenhouse gas (GHG) emissions in relation to MUST’s nine office properties in the US.

The facility will be used for general corporate and working capital purposes, including the refinancing of the existing loan facilities in connection with Manulife US REIT’s green buildings.

Jill Smith, CEO of Manulife US Real Estate Management, the manager for MUST, is pleased that the REIT has secured the facility, which marks MUST’s first sustainability-linked loan.


SEE:Manulife US REIT posts 2% dip in 3Q DPU to 1.48 US cents on enlarged base

“MUST’s properties are included in our sponsor’s target to reduce 80% of GHG emissions by 2050. In 2021, to further our commitment to reducing our environmental footprint, we are working with our sponsor to develop a model to identify GHG reduction opportunities specific to MUST’s buildings. We will continue to work towards our sustainability goals and translate these efforts into positive financial results to create long-term value for our unitholders,” she says.

Tan Su Shan, group head of institutional banking at DBS says that the bank is pleased to continue its longstanding partnership with MUST as it charts a more sustainable growth trajectory. Elaine Lam, head of global corporate banking at OCBC, reiterates the sentiment.

“Green buildings are the building blocks of sustainable cities, so Manulife US REIT’s mission is one that we are excited to support as we continue to work with our customers to do well and do good,” she says.

Units in MUST closed flat at 71.5 US cents on March 23.

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