CapitaLand obtains $500m sustainability-linked bilateral loan

This brings the total funds raised to over $2.42b.

CapitaLand has obtained a four-year $500m sustainability-linked loan from United Overseas Bank (UOB), according to an announcement. This marks the largest sustainability-linked bilateral loan in Singapore’s real estate sector.

The loan is CapitaLand’s fifth sustainability-linked loan bringing the total funds raised by the group and its real estate investment trusts to over $2.42b in less than two years. It is also explicitly linked to the group's achievements in the Global Real Estate Sustainability Benchmark (GRESB) and not any specific project or property, giving the group the flexibility to use the loan proceeds for general corporate purposes. In addition, CapitaLand will obtain interest savings as it maintains or improves its rating on the benchmark.

To date, CapitaLand has partnered with seven financial institutions to secure a total of 12 sustainable financing instruments comprising sustainability-linked loans, green loans, and green bonds.

CapitaLand had achieved interest savings on its existing sustainability-linked loans totalling $600m, with Credit Agricole Corporate & Investment Bank, DBS, Natixis Bank and Société Générale. These sustainability-linked loans are explicitly linked to CapitaLand’s ESG efforts to maintain its listing on the Dow Jones Sustainability World Index.

Further, the group reported that it has achieved utilities cost avoidance of $208m in 2019 since 2009, according to CapitaLand’s 11th Global Sustainability Report.