OUE REAL ESTATE INVESTMENT TRUST OUE REIT Management Pte. Ltd., in its capacity as manager (the Manager) of OUE Real Estate Investment Trust (OUE REIT), announced that OUE REIT has successfully obtained an unsecured sustainability-linked loan (SLL) totalling SGD 600 million for the early refinancing of SGD 540 million existing secured borrowings due in 2025 and for general corporate purposes. The SLL was launched with an initial loan amount of SGD 540 million and a greenshoe option of up to SGD 60 million.
Backed by strong support from a total of 12 banks, the SLL was oversubscribed by 2.0 times and was subsequently upsized to SGD 600 million including the greenshoe. OCBC Bank was the sole Mandated Lead Arranger and Bookrunner as well as the sustainability coordinator for the transaction. With the new facility in place, OUE REIT has no further refinancing requirements until the second half of 2025 where only 25% of the total debt is due.
Post refinancing, the average term of debt as of 31 December 2023 will lengthen to 3.1 years on a pro forma basis, with the weighted average cost of debt expected to remain largely stable. The proportion of unsecured debt will also significantly increase to 86.7% post refinancing on a pro forma basis. This facility is OUE REIT's first SLL which references its recalibrated sustainability performance targets announced on 29 February 2024, allowing OUE REIT to enjoy savings in interest costs when the reduction target of absolute Greenhouse Gas (GHG) emissions of commercial properties is achieved.
OUE REIT has advanced its commitment to sustainability by replacing its previous target based on energy intensity with a more ambitious goal of achieving a 40% reduction in absolute GHG emissions for its commercial properties, using Fiscal Year 2023 as the base year.
