Mapletree Logistics Trust bags first S$200m sustainability-linked loan
MAPLETREE Logistics Trust (MLT) has made its first move into sustainable financing with a S$200 million sustainability-linked loan from OCBC Bank to be used for general working capital, the manager said in a statement on Thursday.
The six-year committed revolving credit facility is designed with reference to MLT’s rooftop solar installation programme for its logistics properties in Asia-Pacific.
To date, MLT’s rooftop solar installations comprise six facilities in Japan and one in Singapore with a total capacity of 6.3 megawatt peak. In the next three years, the manager plans to install at least eight other rooftop solar panels in Singapore and pilot this programme in other markets such as Australia and China.
Under the facility, MLT will report its progress on an annual basis, and will be eligible for a discount on the interest rate charged on the loan if it meets its renewable energy generation target.
MLT said it is the first Singapore-listed real estate investment trust that has linked its renewable energy generation target to sustainable financing.
“This facility demonstrates MLT’s continual efforts to embed sustainability into its business while also achieving financial cost benefit,” said the manager.
Shares of MLT closed down two cents to S$1.65 on Thursday before the announcement.
Source: businesstimes.com.sg
