The loan, which is made in line with the sustainability linked loan principles dated May 2021 and updated in July 2021, will have a reduction in interest margin from its second year if Frasers Property (UK) maintains its four-star Global Real Estate Sustainability Benchmark (GRESB) rating.
To be sure, Frasers Property (UK) topped the local market’s office/industrial category for standing investments with a score of 85, against the peer average of 68.
“With this transaction, we are continuing on our journey towards our goal of financing the majority of our new asset portfolio with green and/or sustainable financing by 2024. Being an early-mover in the UK real estate sector for sustainability-linked loans tied to a GRESB rating helps us raise sustainability ideals across our value chain,” says Loo Choo Leong, Frasers Property’s group chief financial officer.
Frasers Property (UK) is aiming for net-zero carbon in all landlord-controlled areas by 2030, as part of the Better Buildings Partnership Climate Change Commitment that is aligned to the Science Based Targets initiative.
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As part of its five sustainability goals unveiled in January 2021, the group has a commitment to be a net-zero carbon organisation -- including Scopes 1, 2 and 3 emissions -- by 2050.
The loan is a bilateral facility from Maybank Singapore, who is also the coordinator for the loan.
As at 1.22pm, shares in Frasers Property are trading flat at $1.11.
Photo: Frasers Property
