Sustainability-linked loan for CapitaLand
Natixis arranged a new sustainability-linked loan for CapitaLand, one of Asia’s largest diversified real estate groups, headquartered and listed in Singapore.
CapitaLand has the flexibility to use the sustainability-linked loans on green projects such as the installation of solar panels, as well as for general corporate purposes. The company will partner with Sembcorp Industries to install about 21,240 rooftop solar panels atop six CapitaLand properties by end 2019.
The five-year multicurrency sustainability-linked loans will see interest rates reduced based on CapitaLand’s achievements of environmental, social and governance metrics.
As an active participant in the green and sustainable financing space, we are delighted to have worked with CapitaLand on this multi-currency ESG/sustainability-linked term loan facility – the first of its kind for us in the real estate sector.
We observe increasing appetite for sustainable lending in the corporate and finance communities, particularly from companies which are staunch in their commitment to strong ESG principles, and which believe that investing sustainably makes good business sense.
While largely still considered innovative products today, from our perspective ESG-linked loans are a win-win for companies, their investors and society as a whole, and we hope to see these loans and similar products become more commonplace as more and more companies appreciate their broad reaching value.