Singapore-based Far East Hospitality Trust has secured its first sustainability-linked loan facility worth S$125 million (US$92.7 million) from OCBC Bank. The five-year loan will be used to refinance the company’s existing bank borrowings, with the interest margin tied to selected sustainability targets that were set together with the lender.
The targets include the reduction in the energy consumption of its portfolio and improvements in the Building and Construction Authority of Singapore’s Green Mark Certification for Far East H-Trust’s existing properties. If these pre-set targets are met, the interest margin on the facility will be subsequently reduced on a tiered basis.
Far East H-Trust has a portfolio of 13 properties in Singapore, consisting of nine hotels and four serviced residences. It includes distinctive landmarks in Singapore, such as Oasia Hotel Downtown, which was named the “Best Tall Building Worldwide” by the Council on Tall Buildings and Urban Habitat in 2018, and Village Hotel Albert Court which was awarded the BCA Green Mark Platinum certification by the Building and Construction Authority since 2015.