Link REIT has secured its first Hong Kong-dollar-denominated green loan, for HK$1bn (€114m), from Singapore-based OCBC Bank.
Proceeds of the loan will be used for general working capital and corporate funding purposes.
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.
Kok-Siong Ng, Link’s CFO, said: “Green financing as part of our capital management strategy is an integral part of our vision.”
OCBC’s regional general manager for North-East Asia, Tan Wing Ming, said Link REIT had put sustainability at the core of its business strategy.
Link REIT’s maiden sustainability-linked loan, signed in March this year with another Singapore bank, DBS, was in Australian dollars and was for general corporate funding purposes, including sustainability initiatives.
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