On Feb 20, DBS announced the issuance of its first social loan of JPY8.8 billion ($72 million) for 10 years to ParkwayLife REIT (PLife REIT).
Proceeds from the social loan will be used to finance PLife REIT’s elder care facilities in Japan, where a rapidly ageing population is driving demand for quality aged care services. The number of people in Japan aged 65 or older hit a record high of 36.25 million in 2024, making up around 30% of the country’s population, above the global average of 10%, according to the World Bank.
This marks PLife REIT’s first social loan following the establishment of its Sustainable Finance Framework, which DBS helped develop. The framework, verified by an independent third party, adheres to internationally recognised market principles, including Social Loan Principle. It outlines how PLife REIT will allocate proceeds from sustainable financing to eligible green and social projects across its portfolio in Singapore, Japan and Europe. These projects include enhancements to healthcare and eldercare infrastructure, energy efficiency upgrades, renewable energy initiatives and climate-resilient building improvements, ensuring financing directly supports initiatives with meaningful environmental and social impact.
Impact indicators for the social loan include the number of nursing home accommodations availed, as well as the number of individuals benefitting from PLife REIT programmes and initiatives.
Yong Yean Chau, CEO of PLife Trust’s manager said, “This refinancing exercise marks an important milestone in PLife REIT’s sustainable financing journey, as we undertake our inaugural 10-year social loan under the Sustainable Financing Framework. As demand for quality healthcare and aged care facilities continues to grow alongside ageing populations, the Framework enables us to channel capital towards assets that deliver meaningful environmental and social outcomes while creating sustainable value for our stakeholders.”
