ESR secures first sustainability-linked loan of $944m

This is a step towards ESR’s 2025 ESG roadmap.

ESR Cayman Limited acquired its first Sustainability-linked loan at $944m (US700m). This signifies the company's first step into sustainable financing.

The loan was secured from a consortium of leading international and Asian banks, with United Overseas Bank Limited acting as Sole Global Coordinator, Mandated Lead Arranger and Sustainability Advisor. Crédit Agricole Corporate and Investment Bank, meanwhile, acted as Sustainability Advisor and Mandated Lead Arranger. These also include MUFG Bank, Ltd and Oversea-Chinese Banking Corporation Limited.

The $944m (US$700M) corporate facility consists of a three-year tranche of $472.26m (US$350m) at Libor plus 2.25% and a five-year tranche of $472.26m (US$350m) at Libor plus 2.75%. This was designed with a tiered incentive mechanism whereas ESR will be entitled to an interest reduction as targets are achieved. These will then be used to refinance the Group’s existing borrowings.

“ESG sits at the heart of ESR’s business. I am very proud of the continued progress the Group has made over the past 12 months since we launched our ESG 2025 Roadmap. This SLL is another important milestone in our efforts to build a thriving, resilient future for our business, our stakeholders and our local communities. As ESR emerges to become Asia Pacific’s largest real asset manager post the planned acquisition of ARA Asset Management, we are poised to leverage the expertise and best practices across the enlarged platform to drive our ESG thought leadership further,” said Jeffrey Perlman, Chairman, ESR.

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