The Link Finance Limited (Link Finance), a wholly owned special purpose vehicle of Link REIT, has obtained a five-year HK$1 billion sustainability-linked loan from OCBC Bank. This marks Link REIT’s first sustainability-linked loan transaction in Hong Kong dollar.
To incentivise Link REIT’s sustainability performance, OCBC Bank will offer reductions in the interest rate on a tiered basis subject to Link’s environmental, social and governance (ESG) performance. Link REIT’s ESG performance will be measured by its continued inclusion in leading global sustainability indices as well as improvements in its Global Real Estate Sustainability Benchmark (GRESB) score. GRESB is widely recognised to be the leading sustainability benchmark for real estate and infrastructure investments across the world.
Proceeds of the loan will be used for general working capital and corporate funding purposes, said Link REIT in the statement.
Kok-Siong Ng, Link’s Chief Financial Officer, said, “Green financing as part of our capital management strategy is an integral part of our vision, and this sustainability-linked loan shows our continued commitment to achieving growth in a sustainable and responsible manner. We are glad to have a like-minded partner like OCBC Bank to support us along this journey.”
Tan Wing Ming, Regional General Manager for North East Asia of OCBC Bank, said, “Link REIT has put sustainability at the core of their business strategy and is an industry leader in that regard. At OCBC, we, too, believe that businesses can do well by doing good, so we are proud to support Link REIT’s green financing endeavours, which will go a long way towards mitigating the impact of climate change.