OUE C-REIT Completes Unsecured Facility Refinancing With Largest Sustainability-Linked Loan
August 18, 2022 – OUE Commercial REIT Management Pte. Ltd., announced that OUE C-REIT and OUE Hospitality Sub-Trust have obtained an unsecured sustainability-linked loan totalling S$978 million (US$707 million) for the refinancing of existing secured borrowings.
The sustainability-linked loan was syndicated by a consortium of four mandated lead arrangers and bookrunners – CIMB Bank Singapore, Maybank Singapore, OCBC Bank and Standard Chartered Bank, with OCBC Bank acting as sustainability advisor for the transaction.
With the new facility in place, there are no further refinancing requirements until September 2023 where only S$291 million (US$210 million)of debt is due.
Post refinancing, the average term of debt as at 30 June 2022 will lengthen to 3.2 years on a pro forma basis with the weighted average cost of debt expected to remain largely stable.
Mr Han Khim Siew, Chief Executive Officer (“CEO”) and Executive Director of the Manager, said, “We are pleased to have secured OUE Commercial REIT’s second sustainability-linked loan and the largest extended to any S-REIT to date. With the strong support of our lenders, we saw an oversubscription of 1.26 times from 19 banks.”
“Significantly increasing the proportion of unsecured debt is an important step in our prudent and proactive capital management strategy which will enhance OUE Commercial REIT’s access to more diverse and competitive funding sources while keeping borrowing costs stable,” he added.
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