News & Views

9 Mar 2020 | Business Banking

Mapletree Investments secures EUR 200 million sustainability-linked loan from OCBC Bank

This is one of the largest sustainability-linked loans for a real estate developer and is also Mapletree Investments' inaugural sustainability-linked loan.

Mapletree Treasury Services Limited, a wholly owned subsidiary of Mapletree Investments Pte Ltd ("Mapletree"), has secured its inaugural sustainability-linked loan of EUR 200 million (about SGD 310 million) from OCBC Bank, which also ranks as one of the largest sustainability-linked loan for a Singapore real estate developer.

The sustainability-linked loan, which will be used for general working capital and corporate funding purposes, is designed to link the facility with key environmental, social and governance (ESG) initiatives that Mapletree focuses on. If pre-set ESG targets are met, the interest rate on the facility will be subsequently reduced on a tiered basis. Mapletree will report its actual ESG performance on an annual basis.

Ms Elaine Lam, Head of Global Corporate Banking, OCBC Bank said "We are very pleased to partner with Mapletree for its inaugural sustainability-linked loan, which further showcases the meaningful relationship that OCBC has built with Mapletree Group over the years. Last year, we also helped several real estate investment trusts ("REITs") managed by Mapletree to embark on their sustainable finance journey. Looking forward, we believe they can inspire more peers to follow suit as sustainable financing continues to gain momentum in the region."

While this is the first sustainability-linked loan for Mapletree with OCBC Bank, it is already Mapletree Group's fourth sustainable finance transaction with OCBC Bank. This track record shows Mapletree’s leadership in the development of green financing and its strong commitment to incorporating sustainability throughout its business operations.

In the last few years, besides rolling out several initiatives to improve both the energy and water efficiencies of its major commercial assets, Mapletree also integrated sustainability across its value chain, starting from the architectural design stage, to the construction stage, and finally in the building maintenance and property management stage. These sustainability efforts have led to many Green Mark Awards by Building and Construction Authority of Singapore and the Leadership in Energy and Environment Design certifications by the U.S. Green Building Council.

OCBC Bank shares Mapletree's commitment to sustainability. The bank entered into the new decade at the top of two regional league tables for sustainable finance and strives to build a sustainable finance portfolio of S$10 billion by 2022. In 2019 alone, the bank made more than S$5 billion in sustainable financing commitments and participated in more than 20 green loans and sustainability-linked loan transactions. The bank has also financed renewable energy projects including solar, onshore wind and offshore wind projects, in Taiwan, China, the United Kingdom, Australia and Malaysia.

Recognising the urgency of fighting climate change, OCBC Bank was also the first bank in Southeast Asia to stop financing new coal-fired power plants.

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