Ascendas Reit enters into its inaugural S$150 million green interest rate swap with Scotiabank

Located in SoMa,San Francisco, US, 505 Brannan Street is a LEED® Platinum-certified Class A office building acquired by Ascendas Reit in 2020.

Singapore, 12 May 2021– Ascendas Funds Management (S) Limited, as the manager (the Manager) of Ascendas Real Estate Investment Trust (Ascendas Reit) is pleased to announce its inaugural US$150 million green interest rate swap (IRS) with Scotiabank. The green IRS will be used to hedge an existing US$150 million green loan, also with Scotiabank. The Manager worked in close collaboration with the bank to design an innovative and bespoke green IRS to support Ascendas Reit’s commitment to meet its key green targets by the swap maturity date.

The green targets are:

1)    The two United States (US) office properties, located at 505 Brannan Street and 510 Townsend Street in San Francisco, are to maintain their LEED® Platinum (or equivalent) classifications. This is the best-in-class environmental certification by the leading building standards organisation in the US.

2)    To increase the total number of green certified properties within Ascendas Reit’s portfolio by a pre-determined figure and achieve a minimum certification level1 for a target number of properties.

510 Townsend Street in SoMa, San Francisco, US, is a LEED® Platinum-certified Class A office building acquired by Ascendas Reit in 2020. LEED® is the best-in-class environmental certification by the leading building standards organisation in the US.

Mr William Tay, Executive Director and Chief Executive Officer of the Manager said, “We are always on the lookout for initiatives to align our financing needs with our sustainability objectives. This green interest rate swap with Scotiabank comes with an ambitious target to demonstrate our commitment to own a greener and more sustainable property portfolio.”

Mr Walter Tas, Managing Director & Head of Asia Pacific from Scotiabank said, “Scotiabank is delighted to deliver a bespoke green financing and hedging solution to Ascendas Reit for its inaugural green-linked loan and swap. We are committed to supporting our clients in their efforts to build a sustainable environment for future generations and advance the low-carbon transition through innovative green solutions.”

Note

1 Includes BCA Green Mark GoldPlus or above, LEED® Gold or above; NABERS 5 stars or above; BREEAM Excellent or above or any other Green Building label that is an equivalent standard and above.

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