Reinforcing leadership in sustainable financing with the close 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 the “Group”; SEHK Stock Code: 1821), APAC’s largest real asset manager powered by the New Economy, has secured a SGD300 million Sustainability-Linked Loan (“SLL”) with an option to upsize it to SGD500 million. This marks the fourth SLL across the ESR Group closed within the past six months, reinforcing the Group’s leadership in sustainable financing and operations.
Leading Asian banks continue to support and acknowledge ESR’s efforts in further strengthening its Environmental, Social and Governance (“ESG”) commitments. United Overseas Bank Limited (“UOB”) – which was also 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 Sustainability Advisor 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 JPY28 billion SLL which closed in November 2021 and January 2022, respectively. ESR will be entitled to a reduction of interest rate (currently at SORA + 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.
Jeffrey Perlman, Chairman 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 SLLs across the Group within the past six months. As APAC’s largest real asset manager, we are committed to leading the industry and investing and operating responsibly by incorporating ESG factors into all aspects of our operations. To further such effort, ESR aims to officially become a signatory of UN-PRI – the United Nations-supported Principles for Responsible Investment – over the coming months. We remain deeply focused on accelerating our ESG commitments to seek to achieve positive social and environmental impact while creating sustainable values for our stakeholders.”
As the leading real asset manager and the largest New Economy real estate platform in APAC, ESR is committed to integrating sustainability into every facet of its business. Since the Group launched its ESG 2025 Roadmap in November 2020, it has made great strides towards bolstering its ESG efforts across multiple aspects, including sustainable financing, green building certifications, generation of renewable energy, promotion of diversity and inclusion, and community engagement.
Jeffrey Shen and Stuart Gibson, Co-founders and Co-CEOs of ESR, said: “ESG plays an integral part in our operations and culture. We are very pleased to make another major step towards our sustainability and financial goals in tandem, closing this SGD300 million SLL with the valuable support of our banking partners, UOB and Maybank. This is a strong testament to the Group’s sustainability strategy and ongoing efforts. As we enter the next phase of sustainable growth as a bigger, stronger platform following the ARA acquisition, we strive to not only sustainably enhance our assets and operations, but also lead and set the standard for sustainable development of our industry and the communities in which we operate.”
Lim Lay Wah, Head of the Global Financial Institutions Group, UOB, said: “UOB is pleased to support the ESR Group as it continues its sustainability journey with ESR Cayman’s maiden syndicated Sing dollar SLL. The landmark transaction also helps ESR diversify its Sing dollar funding sources following the successful acquisition of Singapore-based ARA Asset Management, including its subsidiary LOGOS, earlier this year. We look forward to more collaborations with progressive companies such as ESR on sustainable financing, as part of our commitment to forge a sustainable future for all.”
Maybank Singapore’s Head of Global Banking, Gregory Seow, remarked: “We are delighted to be the preferred financing partner of ESR and look forward to deepening our long-term relationship and furthering the sustainability agenda, particularly in New Economy assets. As a major financial institution in Singapore, we want to continue partnering with key corporate clients in pursuing sustainability-linked loans to deliver superior long-term value to their stakeholders while providing environmental and societal benefits.”
ESR has been committed to capitalising on its strengths and resources to constantly enhance its ESG performance and support the sustainable development and well-being of its stakeholders and the communities. In addition to achieving outstanding scores across multiple categories in the 2021 Global Real Estate Sustainability Benchmark (“GRESB”) Assessment, ESR has also retained its MSCI ESG Rating of A, in recognition of its outstanding performance in ESG best practices.
To learn more about the ESG initiatives and targets of ESR, please visit: https://www.esr.com/en/esg/overview/
ESR is APAC’s largest real asset manager powered by the New Economy and the third largest listed real estate investment manager globally. With US$140.2 billion in total assets under management (AUM), our fully integrated development and investment management platform extends across key APAC markets, including China, Japan, South Korea, Australia, Singapore, India, New Zealand and Southeast Asia, representing over 95% of GDP in APAC, and also includes an expanding presence in Europe and the U.S. We provide a diverse range of real asset investment solutions and New Economy real estate development opportunities across our private funds business, which allow capital partners and customers to capitalise on the most significant secular trends in APAC. ESR is the largest sponsor and manager of REITs in APAC with a total AUM of US$45 billion. Our purpose – 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 of our business. Listed on the Main Board of The Stock Exchange of Hong Kong, ESR is a constituent of the FTSE Global Equity Index Series (Large Cap), Hang Seng Composite Index and MSCI Hong Kong Index. More information is available at www.esr.com.