CapitaLand China Trust secures $150m sustainability-linked loan from UOB

It is the first Singapore-listed REIT to secure this loan from a China portfolio.

CapitaLand China Trust Management Limited announced CapitaLand China Trust (CLCT) obtained its maiden $150m (US$110.26m) sustainability-linked loan from UOB on 30 September.

Under the terms of the sustainability-linked loan, it will incorporate interest rate reductions based on pre-determined sustainability performance targets set out for CLCT's diversified portfolio of properties. These targets include maintaining minimum reductions in carbon emission, as well as energy and water usage. CLCT will use the loan for general working capital and corporate funding requirements, including financing or refinancing of investments.

CEO Tan Tze Wooi said, "As part of the CapitaLand Group, CLCT is committed to embedding sustainability practices in our business strategies and operations across our portfolio. We strive to take proactive steps to ensure responsible and sustainable growth that dovetails with the Chinese government's plan for a greener future. Under CapitaLand's 2030 Sustainability Master Plan, CLCT will continue to look into greening our portfolio and contribute to the environmental well-being of the communities where we operate while delivering long-term economic value to unitholders."

"At UOB, we work proactively with our clients to drive sustainable development, anchored by a common goal to advance together responsibly. From green buildings to sustainable cities, such collective efforts will enable us to create a more positive environmental, social, and economic impact for the region for the long term," added UOB's head of group corporate banking, Leong Yung Chee.

CLCT is Singapore's largest multi-asset China-focused real estate investment trust by market capitalisation and property value.