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 sustainability-linked loan with our key relationship banks.
Our maiden sustainability-linked loan of AUD 212 million from DBS was announced on 22 Mar 2020, followed by the HK$1 billion sustainability-linked loan from OCBC Bank announced on 11 Jun 2020. To incentivise sustainable practices, the loan is structured 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.