Interest rates for the loan were reduced based on Keppel Land’s ongoing environmental, social and governance targets.
Keppel Land secured its maiden sustainability-linked loan of a five-year $150m with DBS Bank.
In a statement, DBS said the loan incorporates interest rate reductions based on pre-determined environmental, social and governance (ESG) targets.
The interest rate for the loan is composed of a compounded daily Singapore Overnight Rate Average (SORA) and an applicable margin.
“With conversations around a low-carbon economy fast gaining traction, we have observed a keen interest within the real estate sector for more sustainable financing instruments. We are pleased to walk alongside Keppel Land as it forges ahead with its sustainability journey by issuing its maiden sustainability-linked loan,” said Lim Wee Seng, Head of Energy, Chemicals and Infrastructure, DBS Bank.
Proceeds of the loan will be used for general corporate purposes, including but not limited to refinancing of maturing debt, capital expenditure for new development projects, and potential land and property acquisitions.
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