The facility incorporates a price reduction structure which is pegged to the company’s global real estate sustainability benchmark (GRESB) performance.
FRASERS Property’s wholly owned subsidiary, Frasers Property Treasury, has secured a dual-tranche, sustainability-linked loan aggregating S$904 million.
On Tuesday (Jul 9), the group said proceeds from the facility, which has a tenure of five years, will be used to refinance existing loans and for working capital and other general corporate purposes.
With the addition of the facility, Frasers said it has obtained more than S$13 billion of green or sustainability-linked loans and bonds.
It also noted that the latest facility’s price reduction structure is pegged to its global real estate sustainability benchmark (GRESB) performance, which allows it to lower borrowing costs if pre-specified targets are met.
GRESB – which is used by more than 170 institutional and financial investors to inform decision-making, including interest rate savings from sustainability-linked loans – ranks entities yearly based on two benchmarks.
The development benchmark ranks real estate companies based on how ESG-centric their development of new construction and major renovation projects are, while the standing investment benchmark looks at how well their existing investments are managed.
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Shares of Frasers Property were trading flat at S$0.795 as at 1.05 pm on Tuesday.
