Link wins $12b green loan

Link Real Estate Investment Trust (0823) said it signed a HK$12 billion sustainability-linked loan with 16 major international and local banks, the largest of its kind in the Asian real estate industry and REIT sector.

The SLL facility consists of four tranches, including a 4-year HK$3 billion revolving credit and HK$3 billion term loan, as well as a 5-year HK$3 billion revolving credit and HK$3 billion term loan.

The SLL is directly tethered to Link's environmental, social and governance strategies and related targets, which include engaging its tenants in developing green leases, engaging contractors and other service providers to provide local employment opportunities as a means to promote upward social mobility, and upgrading its net zero strategy in pursuance of the Science Based Targets initiative Net Zero Standard.

Meanwhile, DBS Hong Kong has arranged a green club loan of HK$4.8 billion for Yuexiu REIT (0405) for financing the acquisition of the Yuexiu Financial Tower.

The transaction, which is valued at 7.8 billion yuan (HK$9.65 billion), is set to enhance the overall quality of Yuexiu REIT's portfolio, making it the largest listed REIT in Hong Kong and Singapore with a Chinese portfolio.

The acquisition is a milestone of Yuexiu REIT's pivot towards green financing. Furthermore, it further demonstrates Yuexiu REIT's contribution towards Yuexiu Group's sustainability goal for implementing innovative environmental practices, the bank said.