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Ascendas India Trust secures maiden S$100 million sustainability-linked loan from UOB

By Ascendas India Trust On 14 April 2021
Ascendas India Trust secures maiden S$100 million sustainability-linked loan from UOB

Ascendas Property Fund Trustee Pte. Ltd., the Trustee-Manager of Ascendas India Trust (“a-iTrust” or the “Trust”), is pleased to announce that it has successfully obtained a five-year S$100 million unsecured sustainability-linked loan facility from UOB.

The facility is a-iTrust’s first sustainability-linked loan. The Trust intends to use the proceeds from the loan for general corporate and working capital requirements, including refinancing existing borrowings, the redevelopment of properties, acquisitions, capital expenditure or asset enhancement works of the Trust’s properties.

The facility features a 2-tier incentive mechanism where a-iTrust is entitled to an interest rate reduction when predetermined sustainability performance targets are met. 

Mr. Sanjeev Dasgupta, Chief Executive Officer said, “a-iTrust considers sustainability as a key driver of its value creation strategy. This is implemented through various initiatives towards the environmental and social well-being of the communities where it operates.

Securing the Trust’s maiden sustainability-linked loan facility is testament to the Trust’s effort in minimising its environmental footprint. The Trust is committed to continuously increase the proportion of its properties which are certified “Gold” or “Platinum”, amidst the Trust’s plans to grow its portfolio. In doing so, it is also able to achieve a lower cost of borrowing for the Trust. This is also in line with CapitaLand Group’s overall green building rating targets of achieving green certifications for all new and existing buildings in its portfolio by 2030.”

Mr Leong Yung Chee, Head of Group Corporate Banking, UOB said, “At UOB, we are focused on collaborating with our clients on their sustainability goals. In 2020, we provided the largest sustainability-linked bilateral loan in Singapore’s real estate sector to CapitaLand Group. Today, we continue to build on that relationship through our support of a-iTrust, a leading listed property trust managed by the Group. The sustainability-linked loan to a-iTrust is tied to the Environmental, Social and Governance performance of a portfolio of buildings in India, making it the first of its kind in Singapore. This marks another milestone in the way we work with our clients to help advance their sustainability goals and we look forward to our continued collaboration.”

About Ascendas India Trust (www.a-iTrust.com)

Ascendas India Trust (a-iTrust) was listed on the Singapore Exchange Securities Trading Limited (SGX-ST) in August 2007 as the first Indian property trust in Asia. Its principal objective is to own income-producing real estate used primarily as business space in India. a-iTrust may also develop and acquire land or uncompleted developments primarily to be used as business space, with the objective of holding the properties upon completion. As at 31 December 2020, a-iTrust’s asset under management stands at S$2.1 billion

a-iTrust’s portfolio comprises seven world-class IT business parks and one logistics park in India, namely the International Tech Park Bangalore, International Tech Park Chennai and CyberVale in Chennai, International Tech Park Hyderabad, CyberPearl, and aVance in Hyderabad, aVance in Pune and Arshiya warehouses near Mumbai. 

a-iTrust is structured as a business trust, offering stable income distributions similar to a real estate investment trust. a-iTrust focuses on enhancing shareholder value by actively managing existing properties, developing vacant land in its portfolio, and acquiring new properties. a-iTrust is managed by Ascendas Property Fund Trustee Pte. Ltd. The trustee-manager is a wholly owned subsidiary of Singapore-listed CapitaLand Limited, one of Asia’s largest diversified real estate


About CapitaLand Limited (www.capitaland.com)

CapitaLand Limited (CapitaLand) is one of Asia’s largest diversified real estate groups. Headquartered and listed in Singapore, it owns and manages a global portfolio worth about S$132.5 billion as at 31 December 2020. CapitaLand’s portfolio spans across diversified real estate classes which includes commercial, retail; business park, industrial and logistics; integrated development, urban development; as well as lodging and residential. With a presence across more than 230 cities in over 30 countries, the Group focuses on Singapore and China as its core markets, while it continues to expand in markets such as India, Vietnam, Australia, Europe and

the USA.

CapitaLand has one of the largest real estate investment management businesses globally. It manages six listed real estate investment trusts (REITs) and business trusts as well as over 20 private funds. CapitaLand launched Singapore’s first REIT in 2002 and today, its stable of REITs and business trusts comprises CapitaLand Integrated Commercial Trust, Ascendas Real Estate Investment Trust, Ascott Residence Trust, CapitaLand China Trust, Ascendas India Trust and CapitaLand Malaysia Mall Trust.

CapitaLand places sustainability at the core of what it does. As a responsible real estate company, CapitaLand contributes to the environmental and social well-being of the communities where it operates, as it delivers long-term economic value to its stakeholders.

Tag : Sustainability

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