Frasers Property TQ5 announced on July 9 that it had obtained a five-year sustainability-linked loan (SLL). The syndicated term loan facility comprises two tranches — an A$407 million loan and a US$407 million loan, amounting to approximately $904 million equivalent. Proceeds from the SLL will be used to refinance existing loans and for working capital and other general corporate purposes.
A key feature of the SLL is its price reduction structure pegged to the group’s GRESB performance, which enables the group to enjoy savings in borrowing costs if prespecified GRESB performance targets are met. GRESB provides validated environmental, social and governance (ESG) performance data annually on real estate assets and portfolios.
The group has participated in GRESB assessment from 2015, with all listed and non-listed business units of Frasers Property participating annually for targeted sector benchmarking since 2021.
Notably, in 2023’s assessment, the group saw significant improvement in its overall GRESB scores.
Furthermore, in the Standing Investments assessment, Frasers Property Industrial was recognised as regional sector leader for its existing assets in Australia, while Frasers Property Singapore was named regional sector leader in the Asia’s Diversified – Office/Retail (non-listed) category.
With this latest SLL, the group has secured more than $13 billion of green or sustainability-linked loans and bonds. In FY2203, the group refreshed its ESG credentials with time-bound targets to ensure they remain relevant to its operating and strategic context.
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As at 1.59pm, shares in Frasers Property are trading flat at 79.5 cents.
