Link secures its first sustainability-linked loan
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Hong Kong Reit Link Asset Management has signed an AU$212 million (US$123 million) five-year sustainability-linked loan with DBS Bank.
The loan is deliberately structured to incentivize sustainable practices, incorporating a reduced pricing structure with interest cost savings, which Link will be eligible for if it maintains its listing on leading global sustainability indices and achieves certain sustainability milestones. It is also the first sustainability-linked loan by an Asian Reit to be linked to GRESB performance.
“As we pursue our medium-term goals outlined in Vision 2025 and to create value for our stakeholders and the communities we serve,” said Link CEO George Hongchoy, “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.”
Both Link and DBS are signatories to the United Nations Global Compact, and are listed on the Dow Jones Sustainability Asia Pacific Index and FTSE4Good Index.
Questions & Answers
Q.What is the primary purpose of this sustainability-linked loan for Link Asset Management?
What is the primary purpose of this sustainability-linked loan for Link Asset Management?
The loan incentivises sustainable practices by offering a reduced pricing structure with interest cost savings. Link will be eligible for these savings if it maintains its listing on global sustainability indices and reaches specific sustainability milestones.
Q.Which specific sustainability performance metric is this loan uniquely linked to?
Which specific sustainability performance metric is this loan uniquely linked to?
This sustainability-linked loan is notable for being the first by an Asian Reit to be linked to GRESB performance. This connects the loan's terms directly to a recognised global real estate sustainability benchmark.
Q.How do the CEO's comments relate this loan to Link's broader business objectives?
How do the CEO's comments relate this loan to Link's broader business objectives?
Link CEO George Hongchoy stated that the loan supports their Vision 2025 medium-term goals. It ensures the integration of sustainability best practices into daily operations, aiming to create value for stakeholders and communities.
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