CapitaLand China Trust secures maiden sustainability-linked loan of S$150 million from UOB

30 September 2021, Singapore – CapitaLand China Trust Management Limited (CLCTML), the manager of CapitaLand China Trust (CLCT), is pleased to announce its maiden sustainability-linked loan, which is from UOB.  This makes CLCT the first Singapore-listed real estate investment trust (REIT) to secure a loan linked to the sustainability performance of a China portfolio. 

Under the terms of the sustainability-linked loan, UOB will offer CLCT a committed term loan facility of S$150 million, which incorporates interest rate reductions based on pre-determined sustainability performance targets set out for CLCT’s diversified portfolio of properties.  These targets include maintaining minimum reductions in carbon emission, energy and water usage. Proceeds of the loan will be used for general working capital and corporate funding requirements, including financing or refinancing of investments.

Mr Tan Tze Wooi, CEO of CLCTML, said: “As part of the CapitaLand Group, CLCT is committed to embedding sustainability practices in our business strategies and operations across our portfolio.  We strive to take proactive steps to ensure responsible and sustainable growth that dovetails with the Chinese government’s plan for a greener future.  In 2020, we reduced our portfolio’s water usage by 39.0%, carbon emissions by 46.2% and energy usage by 39.8%, as compared to the levels in 2008¹.  Under CapitaLand’s 2030 Sustainability Master Plan, CLCT will continue to look into greening our portfolio and contribute to the environmental well-being of the communities where we operate, while delivering long-term economic value to unitholders.”

Mr Leong Yung Chee, Head of Group Corporate Banking, UOB, said: “At UOB, we work proactively with our clients to drive sustainable development, anchored by a common goal to advance together responsibly. We are pleased to partner CLCTML in the inaugural sustainability-linked loan for CLCT, which marks an important step in our longstanding collaboration with the CapitaLand Group in forging a sustainable future. From green buildings to sustainable cities, such collective efforts will enable us to create a more positive environmental, social and economic impact for the region for the long term.”

CLCT is Singapore’s largest multi-asset China-focused REIT by market capitalisation and property value.  CLCT’s portfolio comprises 11 shopping malls and five business park properties with a total gross floor area of approximately 1.7 million square metres, located across 10 leading Chinese cities such as Beijing, Shanghai, Guangzhou, Suzhou and Hangzhou. 

¹ Data provided is for the period from 1 January to 31 December 2020. Computation of energy, water and carbon intensities excludes new properties which have been in operation for less than 12 months, master leased properties and properties undergoing asset enhancement initiatives (CapitaMall Shuangjing, CapitaMall Nuohemule and Rock Square).