Manulife US REIT Secures US$100 Maiden Green Loan From OCBC Bank

May 21, 2020 — Manulife US Real Estate Investment Trust has secured US$100 million Incremental Green Loan Facility from OCBC Bank, who acted as the sole lender and green loan advisor for this transaction. This is MUST’s maiden green loan.

The green loan was raised under Manulife US REIT’s newly established green finance framework, which was developed together with OCBC Bank. The Framework is prepared in line with the relevant international principles and guidelines, and will guide Manulife US REIT in the management of the proceeds.

The proceeds will be used primarily to refinance Peachtree, a 27-storey Class A office building located in Midtown, Atlanta. The property has received the ENERGY STAR® certification by the U.S. Environmental Protection Agency (“EPA”) for six consecutive years since 2014, demonstrating superior energy efficiency performance. The Manager may also use the proceeds for environmental initiatives at other properties within MUST’s portfolio, such as installing energy efficient equipment and water saving facilities, among others.

The Manager aims to remain a sustainability leader in the industry and strives to constantly evaluate and integrate the best Environmental, Social and Governance (“ESG”) practices in MUST’s business operations and activities. To this end, MUST was awarded 5 Stars by the Global Real Estate Sustainability Benchmark (“GRESB”) for the 2nd year running, ranking 3rd out of 12 listed U.S. office REITs in its peer group.

The Manager also proactively adopts green building standards – out of MUST’s nine properties, five are Leadership in Energy and Environmental Design (“LEEDTM”) certified while seven are ENERGY STAR® certified.

Ms Jill Smith, Chief Executive Officer of the Manager said, “In line with the growing importance of ESG to investors, we have incorporated environment and sustainability as an integral part of our operations to ensure our long-term business success. Besides minimising the environmental footprint of our properties, our sustainability strategy complements our proactive capital management approach in terms of diversifying our funding sources with green financing.”

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