Mapletree Logistics Trust secures $200m green loan from OCBC

Mapletree Logistics Trust's first foray into sustainable finance, in November 2019, was also supported by OCBC Bank. PHOTO: ST FILE

SINGAPORE (THE BUSINESS TIMES) - Mapletree Logistics Trust (MLT) has secured its first green loan after two of its subsidiaries on Tuesday entered into an agreement for a $200 million green revolving credit facility with OCBC Bank.

Proceeds from the facility will be used to finance working capital requirements that are in line with the eligibility criteria of MLT's green loan framework.

OCBC Bank was the green loan adviser and the loan's sole lender.

Under the conditions of the loan facility, Mapletree Logistics Trust Management must remain the manager of MLT, and/or the manager of MLT must remain a subsidiary, whether directly or indirectly, wholly owned or majority owned, of MLT sponsor Mapletree Investments.

These conditions are similar to those found in existing loan facilities and notes issued by MLT and its subsidiaries. The aggregate amount of debt facilities that may be affected by a breach of the conditions amounts to about $3.8 billion, of which $3.1 billion is drawn and outstanding as at Feb 9, 2021.

MLT's first foray into sustainable finance, in November 2019, was also supported by OCBC Bank through a $200 million sustainability-linked loan designed to incentivise MLT to expand the renewable energy generation capacity for its portfolio.

Elaine Lam, head of global corporate banking at OCBC Bank, said: "The continued commitment from like-minded corporates like Mapletree Logistics Trust is not just important for sustainable financing's growth, but also contributes to the larger goal of developing low-carbon, smart cities."

In June last year, OCBC Bank announced a new target of $25 billion by 2025 for its sustainable finance portfolio. This target was set as the bank had surpassed its original $10 billion target in the first quarter of 2020, two years ahead of its 2022 schedule.

MLT's units ended trading on Tuesday at $1.98, up $0.03 or 1.54 per cent, while shares of OCBC ended trading at $10.45, up $0.01 or 0.1 per cent.

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