Now reading:

Far East Hospitality Trust secures maiden sustainability-linked loan facility of S$125 million from OCBC Bank

Far East Hospitality Trust secures maiden sustainability-linked loan facility of S$125 million from OCBC Bank

  • 29 Mar 2021

Singapore-focused hotel and serviced residences hospitality trust, Far East Hospitality Trust (“Far East H-Trust”) has secured its first sustainability-linked loan facility worth S$125 million for a term of 5 years from OCBC Bank, which is the sole lender for this transaction.

The loan will be used to refinance Far East H-Trust’s existing bank borrowings, with the loan’s interest margin being tied to selected sustainability targets that were set together with OCBC Bank. These targets include the reduction in the energy consumption of its portfolio and improvements in the Building and Construction Authority of Singapore’s (“BCA”) Green Mark Certification for Far East H-Trust’s existing properties. If these pre-set targets are met, the interest margin on the facility will be subsequently reduced on a tiered basis.

Far East H-Trust has a portfolio of 13 properties in Singapore, consisting of 9 hotels and 4 serviced residences. It includes distinctive landmarks in Singapore, such as Oasia Hotel Downtown, which was named the “Best Tall Building Worldwide” by the Council on Tall Buildings and Urban Habitat in 2018, and Village Hotel Albert Court which was awarded the BCA Green Mark Platinum certification by the Building and Construction Authority since 2015 – a reflection of Far East H-Trust’s effort to reduce the environmental impact of its operations.

Mr Gerald Lee, Chief Executive Officer of the Managers said, “We recognize our responsibility in conserving the natural environment and have incorporated sustainability and enhancing operational efficiency as essential parts of our operations. This maiden green loan strengthens our approach and commitment in managing our properties.”

For OCBC Bank, providing this sustainability-linked loan, which was secured through Far East Hospitality Real Estate Investment Trust, is a natural progression, with the bank having worked with various real estate investment trusts and corporates on their sustainable financing journey.

Ms Elaine Lam, Head of Global Corporate Banking, OCBC Bank, said, “We are glad to support Far East Hospitality Trust on this sustainability-linked loan. The continued commitment from like-minded corporates like Far East Hospitality Trust will contribute to the larger goal of building a greener world for future generations. We hope more of their peers will adopt this long-term mindset and take action to shift towards greener sources of financing.”


FOR THE PRESS

Media Queries

Please contact:

Liew Aiqing

corpcomms@ocbc.com