Aims Apac Reit secures sustainability-linked loan facilities of S$450 million, A$160 million

[SINGAPORE] The manager of Aims Apac Real Estate Investment Trust (AA Reit) on Thursday (May 21) said that it has entered into a second unsecured sustainability-linked loan.

This comprises S$450 million and A$160 million (S$146 million) in revolving credit facilities.

Separately, it announced a A$115 million unsecured Australian syndicated loan.

The sustainability-linked loan reinforces “AA Reit’s commitment to integrating sustainability into its capital management strategy”, the manager said.

It incorporates sustainability margin adjustments tied to the Reit’s performance, with pre-determined targets focused on reducing Scope 2 – or indirect – carbon emissions; expanding solar energy capacity across the portfolio; and increasing the proportion of green leases with tenants.

UOB arranged the loan facilities, acting as sole coordinator, mandated lead arranger, bookrunner and sustainability coordinator.

Green loan tranche tied to Optus Centre

The A$115 million syndicated loan was secured by two wholly owned subsidiaries of AA Reit, and arranged by UOB’s Sydney branch and ANZ.

It includes a A$50 million green loan tranche tagged to Optus Centre, a Melbourne office asset that is part of the Reit’s portfolio, the manager said.

It added that the tranche reflects the trust’s “focus on aligning its funding strategy with the environmental performance of its portfolio, while supporting the long-term resilience and sustainability credentials of its Australian assets”.

“These facilities enhance our financial flexibility, extend our debt maturity profile and further diversify our funding sources,” said Russell Ng, chief executive officer of the manager.

On a pro forma basis, AA Reit’s weighted average debt maturity would lengthen from 2.2 years to about four years, with all debt being unsecured after refinancing.

Units of AA Reit closed S$0.03 or 1.9 per cent higher at S$1.60 on Thursday, before the announcement.