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ESG Investing / Treasury & Capital Markets
ESR closes US$218.2 million sustainability loan
Proceeds to fund refinancing of existing borrowings, working capital requirements
The Asset 24 May 2022

Asia-Pacific real asset manager ESR Cayman has secured a S$300 million (US$218.2 million) sustainability-linked loan (SLL) with an option to upsize it to S$500 million, marking the fourth SLL across the ESR Group closed within the past six months.

United Overseas Bank (UOB) – which was also sole global coordinator, mandated lead arranger and sustainability adviser for ESR’s inaugural SLL – acted as sustainability adviser, mandated lead arranger, underwriter and bookrunner. Maybank acted as sustainability adviser and mandated lead arranger.

The five-year unsecured, committed corporate facility has the same tiered incentive mechanism as ESR’s inaugural US$1 billion SLL and the 28-billion-yen (US$219.24 million) SLL that closed in November 2021 and January 2022, respectively.

ESR will be entitled to a reduction of interest rate (currently at Sora plus 1.65%) as it achieves its sustainability targets. The proceeds will be used to fund the group’s refinancing of existing borrowings, working capital requirements and for general corporate purposes.

“ESR has closed nearly US$2.5 billion in SLLs across the group within the past six months,” says Jeffrey Perlman, chairman of company. “As Asia-Pacific’s largest real asset manager, we are committed to leading the industry and investing and operating responsibly by incorporating ESG [environmental, social and governance] factors into all aspects of our operations.

“To further such effort, ESR aims to officially become a signatory of the United Nations Principles for Responsible Investment over the coming months. We remain focused on accelerating our ESG commitments to seek to achieve positive social and environmental impact while creating sustainable values for our stakeholders.”

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