Oct 4, 2021
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The $540 million SORA-based loan will be used by UOL to refinance existing loan facility and for general corporate purposes. Source: UOL

UOL Treasury Services, a fully-owned subsidiary of UOL Group, has secured a $540 million sustainability-linked loan pegged to the Singapore Overnight Rate Average (SORA).

In an SGX filing, UOL revealed that the five-year loan would be used to refinance existing loan facility and for general corporate purposes.

It shared that the loan is being financed by DBS Bank, United Overseas Bank and Oversea-Chinese Banking Corporation, with each bank extending $180 million.

It noted that UOL would qualify for an interest rate reduction once it meets its sustainability targets in reducing carbon emissions.

SORA – the new benchmark interest rate within Singapore – replaces the Singapore Dollar Swap Offer Rate and Singapore Interbank Offered Rate (SIBOR).

“As one of Singapore’s leading property developers, we are committed to managing our sustainability strategy in a holistic manner that creates value for our stakeholders,” said UOL Chief Financial Officer Kwa Bing Seng.

“This inaugural SORA-based sustainability-linked loan highlights our commitment to bring about positive environmental and social impact while achieving business objectives. We believe integrating green financing is a staple in our sustainability journey and the way forward.”

UOL secured its first green loan, which amounts to $120 million, in 2020 to partially fund the development of Pan Pacific Orchard into a biophilic hotel. Set to open in 2H 2022, the 347-room Pan Pacific Orchard will be Singapore’s first zero-waste hotel.

In March, Singapore Land Group, the Group’s property subsidiary, also secured its first sustainability-linked and green loans amounting to $300 million, which it plans to use to partially refinance its existing facilities and for general corporate purposes as well as for Singapore Land Tower’s major upgrade.

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Cheryl Chiew, Digital Content Specialist at PropertyGuru, edited this story. To contact her about this story, email: cheryl@propertyguru.com.sg

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