In an agreement on September 3, the United Overseas Bank Ltd. (UOB) and Singapore-based $CapitaLand Mall Trust entered into a dual-tranche loan of S$200 million (US$145.9 million), making it the first green loan, one-of-a-kind in Singapore.
This loan agreement follows CapitaLand’s first sustainability loan settled last year on October 1st, in order to provide fund for the Building and Construction Authority Green Mark approved properties, as well as strengthen the long-term ties with UOB.
Additionally, setting a milestone in referencing Singapore Overnight Rate Exchange (SORA) as well as Singapore Overnight Financing Rate (SOFR), CapitaLand becomes Singapore’s first firm to have obtained a SORA-based plan.
CFO of CapitaLand group, Andrew Lew said that the adoption of the new interest rate standards across various currencies would enable to work with many key banking partners like UOB to unsure the smooth transitioning from their loan book to alternative standard rates.
According to the terms of the loan, and abiding the annual GSERB Real Estate assessment, UOB will be offering tiered interest rates as per CapitaLand’s achievements.
In the uncertain times of coronavirus-induced pandemic, CapitaLand has been trying to commit to sustainability and enhance its financial positions. Last year, CapitaLand had made it to the leader in Asia “Retail-listed” category in GSERB.