Link secures its maiden sustainability-linked loan of AUD 212 million from DBS
Link is eligible for interest savings if it achieves sustainability milestones
Australian dollar loan to match the currency of Link’s latest acquisition in Sydney
To incentivise sustainable practices, DBS has structured the loan to incorporate a reduced pricing structure with interest cost savings. Link will be eligible for the interest savings if it maintains its listing on leading global sustainability indices and achieves sustainability milestones based on performance in the annual independently assessed Global Real Estate Sustainability Benchmark (GRESB). GRESB is widely recognised to be the leading sustainability benchmark for real estate and infrastructure investments across the world.
The proceeds of the loan will be used for general corporate funding purposes including sustainability initiatives. Subsequent to the acquisition of 100 Market Street in Sydney announced in December last year, Link is taking on the sustainability-linked loan in Australian dollar to match the currency of this investment.
George Hongchoy, Link’s Chief Executive Officer, said, “As we pursue our medium-term goals outlined in Vision 2025 and to create value for our stakeholders and the communities we serve, we are pleased to ensure the integration of sustainability best practices into our daily operations by introducing our very first sustainability-linked loan with our key relationship bank, DBS.”
Chew Chong Lim, Managing Director & Global Head of Real Estate, Institutional Banking, DBS, said, “DBS is privileged to partner Link as it progresses on its sustainability financing journey. As Asia’s largest REIT, Link’s maiden sustainability-linked loan underscores the growing shift towards responsible financing in the region. We believe financing solutions with features that incentivise sustainable development enable corporates to generate long-term value while contributing to the United Nations Sustainable Development Goals. We look forward to forging more such collaborations as we collectively meet tomorrow’s sustainability challenges.”
Both Link and DBS are signatories to the United Nations Global Compact and are committed to driving progress towards the Sustainable Development Goals in ways that are meaningful for their respective businesses. For DBS, this includes acting on climate change by partnering corporates in adopting responsible financing practices. In 2019, DBS provided sustainable financing amounting to about SGD 5 billion.
Link and DBS are listed on the Dow Jones Sustainability Asia Pacific Index and FTSE4Good Index. Additionally, Link is listed on the Hang Seng Corporate Sustainability Index, while DBS is listed on the Singapore Exchange ESG Indices under the Leaders Index and Transparency Index.
DBS is a leading financial services group in Asia with a presence in 18 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank’s “AA-” and “Aa1” credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Euromoney, “Global Bank of the Year” by The Banker and “Best Bank in the World” by Global Finance. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 11 consecutive years from 2009 to 2019.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, and positively impacting communities through supporting social enterprises, as it banks the Asian way. It has also established a SGD 50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. The bank acknowledges the passion, commitment and can-do spirit in all our 28,000 staff, representing over 40 nationalities. For more information, please visit www.dbs.com.
Link Real Estate Investment Trust (Hong Kong stock code: 823), managed by Link Asset Management Limited, is a leading retail-focused REIT in the world and Asia’s largest REIT in terms of market capitalisation. Listing in 2005 as the first REIT in Hong Kong, Link has been 100% held by public and institutional investors and is a Hang Seng Index constituent stock. Link’s business covers investment and management of diversified portfolios including retail facilities, car parks and offices. From its home in Hong Kong, Link seeks to extend its portfolio growth trajectory and grasp expansion opportunities in different markets in pursuit of our medium-term target Vision 2025. Leveraging on a solid business foundation and professional management, Link strives to become a world class real estate investor and manager. For details, please visit https://www.linkreit.com/en.