Hong Kong, Singapore - Link Asset Management Limited (Link), the manager of Link Real Estate Investment Trust (Link REIT; Hong Kong stock code: 823), and DBS Bank (DBS), announced today (Sunday) that Link has signed a AUD 212 million five-year sustainability-linked term loan with DBS. This marks Link’s first sustainability-linked loan following its issuance of USD 500 million green bonds in 2016 and HKD 4 billion convertible green bonds in 2019.
To incentivise sustainable practices, DBS has structured the loan to incorporate a reduced pricing structure with interest cost savings. Link will be eligible for the interest savings if it maintains its listing on leading global sustainability indices and achieves sustainability milestones based on performance in the annual independently assessed Global Real Estate Sustainability Benchmark (GRESB). GRESB is widely recognised to be the leading sustainability benchmark for real estate and infrastructure investments across the world.
The proceeds of the loan will be used for general corporate funding purposes including sustainability initiatives. Subsequent to the acquisition of 100 Market Street in Sydney announced in December last year, Link is taking on the sustainability-linked loan in Australian dollar to match the currency of this investment.
George Hongchoy, Link’s Chief Executive Officer, said, “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.”
Chew Chong Lim, Managing Director & Global Head of Real Estate, Institutional Banking, DBS Bank, said, “DBS is privileged to partner Link as it progresses on its sustainability financing journey. As Asia’s largest REIT, Link’s maiden sustainability-linked loan underscores the growing shift towards responsible financing in the region. We believe financing solutions with features that incentivise sustainable development enable corporates to generate long-term value while contributing to the United Nations Sustainable Development Goals. We look forward to forging more such collaborations as we collectively meet tomorrow’s sustainability challenges.”
Both Link and DBS are signatories to the United Nations Global Compact and are committed to driving progress towards the Sustainable Development Goals in ways that are meaningful for their respective businesses. For DBS, this includes acting on climate change by partnering corporates in adopting responsible financing practices. In 2019, DBS provided sustainable financing amounting to about SGD 5 billion.
Link and DBS are listed on the Dow Jones Sustainability Asia Pacific Index and FTSE4Good Index. Additionally, Link is listed on the Hang Seng Corporate Sustainability Index, while DBS is listed on the Singapore Exchange ESG Indices under the Leaders Index and Transparency Index.
Link Real Estate Investment Trust (Hong Kong stock code: 823), managed by Link Asset Management Limited, is a leading retail-focused REIT in the world. Listed in 2005 as the first REIT in Hong Kong, Link has been 100% held by public and institutional investors and is a Hang Seng Index constituent stock. From its home in Hong Kong, Link manages a diversified portfolio including retail facilities, car parks and offices spanning Hong Kong, Beijing, Guangzhou, Shanghai, Shenzhen, London and Sydney. Link seeks to extend its portfolio growth trajectory and grasp expansion opportunities in different markets in pursuit of our medium-term target Vision 2025. For details, please visit https://www.linkreit.com/.