Link, Suntec secure green loans totalling A$662m

Hong Kong-listed Link REIT has secured a A$212m (US$127m) sustainability-linked loan, just days after Singapore’s Suntec REIT obtained A$450m (US$269m) in green financing.

Singapore bank DBS arranged the five-year sustainability-linked term loan for Link, which will receive interest savings for maintaining its leading global sustainability indices and achieving sustainability milestones.

The loan was taken out in Australian dollars to match its US$470m acquisition of 100 Market Street in Sydney in December last year.

“As Asia’s largest REIT, Link’s maiden sustainability-linked loan underscores the growing shift towards responsible financing in the region,” said Chew Chong Lim, managing director and global head of real estate, institutional banking at DBS.

The Singaporean lender provided S$5bn in sustainable financing in 2019.

Link’s maiden sustainability-linked loan follows its issuance of HK$4bn in convertible green bonds in 2019 and US$500m in green bonds in 2016.

“As we pursue our medium-term goals outlined in Vision 2025 and to create value for our stakeholders and the communities we serve, we are pleased to ensure the integration of sustainability best practices into our daily operations by introducing our very first sustainability-linked loan with our key relationship bank, DBS,” said Link CEO George Hongchoy.

Earlier this month, Suntec REIT’s wholly-owned Australian subsidiary received a green loan to refinance existing borrowings, financing or refinancing acquisitions, and other purposes.

The REIT holds interests in a commercial building in Sydney, Melbourne’s Southgate Complex, a commercial development on Collins Street in Melbourne, and a commercial building in Adelaide.

The loan conditions express that it will be reviewed if the REIT manager ceases to be a subsidiary of ARA Asset Management, or if the REIT manager ceases to manage the REIT unless it’s replaced by another ARA subsidiary.

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Benn is a freelance journalist and the publisher of APAC Real Estate. He has reported for the Herald Sun, REFI Europe, S&P Global Market Intelligence, Leader Newspapers, and more.