ESR Group, the sponsor of SGX-listed ESR-LOGOS REIT (E-LOG), has announced the closing of a HK$4 billion ($714.1 million) sustainability-linked loan on Sept 5.
The loan, which is the fifth such loan that the group has closed within the past 12 months, comes with the option to upsize it to HK$7 billion.
The loan is a five-year unsecured committed facility, at Hong Kong Interbank Offered Rate (HIBOR) +1.8%. It has a tiered incentive mechanism where the group will be entitled to an interest reduction when its sustainability targets are achieved.
The proceeds from the current loan will be used to fund the group’s refinancing of existing borrowings, investments, working capital and general corporate purposes.
To date, the group has closed a total of US$3 billion ($4.2 billion) in sustainability-linked loans. This is as the group continues to integrate environmental, social and governance (ESG) principles into its financial management, operations and future planning.
The Hongkong and Shanghai Banking Corporation Limited (HSBC), Mizuho Bank (Mizuho) and MUFG Bank (MUFG) acted as sustainability advisors, mandated lead arrangers and bookrunners.
See also: A US$12 bil climate fund is readying a rare bond issuance
Shares in Hong Kong-listed ESR Group closed 15 HK cents lower or 0.7% down at HK$21.30 on Sept 5.
