Strengthen leadership in sustainable finance with the closing of the fourth SLL across the Group in six months
SINGAPORE and HONG KONG, May 24, 2022 /PRNewswire/ — ESR Cayman Limited (“ESR” or the “Company”, together with its subsidiaries as a “Group”; stock code SEHK: 1821), APAC’s largest real estate asset manager powered by new economy, obtained a SGD 300 million Sustainability Linked Loan (“SLL”) with an option to upgrade to SGD 500 million. This is the ESR Group’s fourth SLL closed in the last six months, reinforcing the group’s leadership in sustainable financing and operations.
Major Asian banks continue to support and recognize ESR’s efforts to further strengthen its environmental, social and governance (“ESG”) commitments. United Overseas Bank Limited (“UOB”) – which was also the Sole Global Coordinator, Mandated Lead Arranger and Sustainability Advisor for ESR’s inaugural SLL – acted as Sustainability Advisor, Mandated Lead Arranger , underwriter and bookrunner. Malayan Banking Berhad (“Maybank”) acted as the appointed sustainability advisor and lead arranger.
The five-year unsecured and committed corporate facility has the same tiered incentive mechanism as the first ESR facility 1 billion US dollars SLL and the 28 billion yen SLL which closed in November 2021 and January 2022, respectively. ESR will be entitled to an interest rate reduction (currently at SORA + 1.65%) as it achieves its sustainability goals. The proceeds will be used to finance the refinancing of the Group’s existing borrowings, working capital requirements and general corporate purposes.
Jeffrey PerlmanPresident of ESR, said, “I am proud of the progress ESR has made on the sustainability front, closing a total of nearly US$2.5 billion in SLL across the Group over the last six months. As APAC’s largest real estate asset manager, we are committed to leading the industry and investing and operating responsibly by integrating ESG factors into all aspects of our operations. To continue this effort, ESR aims to become an official signatory of the UN-PRI – the United Nations-backed Principles for Responsible Investment – in the coming months. We remain deeply focused on accelerating our ESG engagements to seek to achieve positive social and environmental impact while creating sustainable values for our stakeholders.”
As the leading real estate asset manager and the largest new economy real estate platform in Asia-Pacific, ESR is committed to embedding sustainability into all facets of its business. Since the Group launched its 2025 ESG roadmap in November 2020it has made great strides to strengthen its ESG efforts in multiple aspects, including sustainable finance, green building certifications, renewable energy production, promoting diversity and inclusion, and community engagement.
Jeffrey Shen and Stuart Gibsonco-founders and co-CEOs of ESR, said: “ESG is an integral part of our operations and our culture. We are very pleased to take another major step towards our sustainability and financial goals in tandem, by closing this SGD 300 million SLL with the valuable support of our banking partners, UOB and Maybank. This is strong testimony to the Group’s sustainable development strategy and ongoing efforts. As we enter the next phase of sustainable growth as a larger and stronger platform following the acquisition of ARA, we are striving not only to sustainably improve our assets and operations, but also to lead and ‘set the standard for the sustainability of our industry and the communities in which we operate.”
Lim Lay WahHead of Global Financial Institutions Group, UOB, said, “UOB is delighted to support ESR Group as it continues its sustainability journey with ESR Cayman’s first syndicated subsidiary Sing dollar SLL. This landmark transaction also helps ESR diversify its sources of Sing dollar funding following the successful acquisition of SingaporeARA Asset Management, including its subsidiary LOGOS, earlier this year. We look forward to more collaborations with progressive companies such as ESR on sustainable finance, as part of our commitment to forging a sustainable future for all.”
Head of Global Banking Operations of Maybank Singapore, Gregory Seowsaid, “We are delighted to be ESR’s preferred financial partner and look forward to deepening our long-term relationship and advancing the sustainability agenda, particularly in new economy assets. As a major financial institution in Singaporewe want to continue to partner with key corporate clients in the pursuit of sustainability-related lending to deliver superior long-term value to their stakeholders while delivering environmental and societal benefits.”
ESR is committed to capitalizing on its strengths and resources to constantly improve its ESG performance and support the sustainable development and well-being of its stakeholders and communities. In addition to achieving outstanding scores in several categories in the 2021 Global Real Estate Sustainability Benchmark (“GRESB”) assessment, ESR also retained its MSCI ESG rating of A, in recognition of its outstanding performance in best practices. ESG.
To learn more about ESG initiatives and ESR objectives, please visit: https://www.esr.com/en/esg/overview/
ESR is APAC’s largest real estate asset manager powered by the new economy and the third largest listed real estate investment manager in the world. With US$140.2 billion of total assets under management (AUM), our fully integrated development and investment management platform spans major APAC markets, including China, Japan, South Korea, Australia, Singapore, India, New Zealand and South East Asiaaccounting for over 95% of GDP in APAC, and also includes a growing presence in Europe and in the United States We offer a diverse range of real estate asset investment solutions and new economy real estate development opportunities across our private fund businesses, enabling financial partners and clients to capitalize on APAC’s most important secular trends. ESR is the largest REIT sponsor and manager in APAC with a total AUM of 45 billion US dollars. Our goal – Space and investment solutions for a sustainable future – drives us to manage sustainably and impactfully and we consider the environment and the communities in which we operate as key stakeholders in our business. Listed on the main board of the Bourse de hong kong, ESR is part of the FTSE Global Equity (Large Cap) Index Series, the Hang Seng Composite Index and the MSCI Hong Kong Index. More information is available at www.esr.com.