Singapore-listed Keppel REIT has obtained an unsecured S$150 million green loan facility from OCBC Bank, its second such facility this year, to grow its green building portfolio.
In a disclosure to the Singapore Exchange, Keppel REIT’s manager said the green loan facility can be utilised to finance or re-finance eligible green projects, among others. The loan was obtained by its subsidiary, Keppel REIT Fin Company (KRFC).
In June, the listed commercial office landlord obtained an S$505-million green loan facility through subsidiary Ocean Properties.
The REIT has also established the Keppel REIT Green Loan Framework, in line with green loan principles from the Loan Market Association and the Asia Pacific Loan Market Association, on the use of proceeds, project evaluation, and reporting, its filing said.
“Our Green Loan Framework will provide a clear and structured guide for Keppel REIT as we grow our proportion of green funding sources in our continued drive to build a sustainable future,” said Paul Tham, CEO of Keppel REIT Management, manager of the $6-billion REIT.
Under the terms and conditions of the Green Loan Facility agreement, OCBC may give notice to KRFC as the borrower to prepay any outstanding loans if the manager of Keppel REIT ceases to be 100 per cent directly and/or indirectly owned by Keppel Corporation.
Keppel REIT is one of Asia’s leading REITs with a portfolio of Grade A commercial assets in Singapore, the Australian cities of Sydney, Melbourne, Brisbane and Perth, as well as Seoul, South Korea.
All of Keppel REIT’s Singapore assets are certified Platinum under the Building and Construction Authority’s Green Mark Scheme. The scheme was launched in January 2005 as an initiative to drive Singapore’s construction industry towards more environmentally friendly buildings.
Most of its operational buildings in Australia have also achieved the 5 Stars National Australian Built Environment Rating System (NABERS) Energy rating, the REIT said.
