Sabana Industrial REIT bags $150m sustainability-linked loan from HSBC

It comprises a 4-year tranche of $75m and a 5-year tranche of $75m.

Sabana Industrial REIT secured its first sustainability-linked loan with the Hongkong and Shanghai Banking Corporation Limited (HSBC) valued at $150m. 

According to Sabana Real Estate Investment Management, the loan is in line with the REIT’s focus on strengthening its environmental, social, and governance (ESG) commitments and investing with a sustainability agenda.

Proceeds from the agreement will be directed towards refinancing existing indebtedness, general corporate purposes, and working capital requirements. Through this agreement, all of the group’s remaining loans will remain unencumbered.

Making up the loan is a four-year tranche of $75m and a five-year tranche of $75m. Under the terms, the loan’s interest rate will be set in accordance with pre-determined annual energy and water intensity targets, with lower pre-agreed interest rates being implemented once these are met. 

“We would like to thank HSBC for supporting our journey to advance our ESG goals as part of our broader strategy. Beyond giving us greater financial flexibility, this loan underscores our commitment to integrate sustainability in our operations, minimise our environmental impact and deliver growth in a responsible manner,” added Lim Wei Huang, CFO, Sabana Industrial REIT.