The manager of CapitaLand Mall Trust (CMT) announced on September 8 that its $200 million revolving credit facility has been converted into a sustainability-linked loan by United Overseas Bank (UOB).

The loan follows CMT’s first $200 million green loan secured on Oct 1, 2019, to finance the Building and Construction Authority Green Mark-certified properties in its portfolio.

Under the terms of the loan, UOB will offer CMT tiered interest rates on the facility based on the trust’s achievements in the annual GRESB Real Estate assessment.

GRESB is a leading environmental, social and governance (ESG) benchmark for real estate and infrastructure companies’ ESG efforts in management, environmental performance and building development.

CMT was recognised as the leader in the Asia “Retail – Listed” category in 2019.

“The sustainability-linked loan from UOB marks another milestone in CMT's journey to continually strengthen our ESG standards while creating long-term value for our stakeholders,” says Tony Tan, CEO of the manager.

“CMT is firmly committed to sustainability and we are pleased to be able to capitalise on our ESG achievements to enhance our financial position, especially during these uncertain times,” Tan adds.

“At UOB, we are committed to collaborating with our clients to advocate sustainable development... It also builds on our efforts to help more companies in Singapore improve their ESG impact through the use of sustainable financing solutions,” says Leong Yung Chee, head of corporate banking in Singapore at UOB.

Shares in CMT closed 1 cent lower, or 0.5% down, at $1.97, while shares in UOB closed 8 cents lower, or 0.4% down, at $19.45 on September 8.