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According to Frasers Centrepoint Trust, which owns 40% of Sapphire Start Trust, the loan will be used to “refinance existing borrowings, for working capital and general corporate funding requirements of SST in relation to Waterway Point”.
Sapphire Star Trust (SST), which owns shopping mall Waterway Point, has obtained its first green loan of $589 million from Sumitomo Mitsui Banking Corporation Singapore Branch and United Overseas Bank Limited, according to a release by Frasers Centrepoint Trust (FCT).
Aside from serving as the mandated lead arrangers and original lenders, the two banks are also the green loan coordinators for the loan.
In an SGX filing, FCT’s manager revealed that the loan will be used to “refinance existing borrowings, for working capital and general corporate funding requirements of SST in relation to Waterway Point”. FCT holds a 40% interest in SST.
It explained that the loan constitutes a five-year Singapore Overnight Rate Average (SORA)-based secured term loan and an uncommitted revolving loan facility arranged by the two banks.
“It is structured as a green loan based on the Green Loan Principles issued by the Loan Market Association, the Asia Pacific Loan Market Association, and the Loan Syndications & Trading Association,” added Frasers Centrepoint Asset Management.
It noted that FCT’s share in the loan is proportionate to its 40% stake in SST.
“The loan will enjoy a reduction in margin on its second year, if Waterway Point retains its current Green Mark GoldPlus certification status issued by the Building and Construction Authority (BCA),” it said.
Richard Ng, CEO of Frasers Centrepoint Asset Management, said the completion of the green loan for Waterway Point lifted the proportion of green loans within FCT’s portfolio to about 18%.
“FCT views sustainability as an integral part of its business strategy. As a testament of the manager’s commitment to our sustainability objectives, we aim to finance the majority of FCT’s sustainable asset portfolio with green and sustainable financing by 2024,” he said.
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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this story, email: victorkang@propertyguru.com.sg
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