GLOBAL logistics property player GLP has obtained its first sustainability-linked (SL) loan of US$658 million from 10 undisclosed banks that participated in the deal.
The three-year revolving credit facility is the largest SL loan for the real estate sector in the Asia-Pacific region excluding Japan, lead sustainability structurer and coordinator ING said in a press statement on Monday.
GLP global treasurer Edwin Tey said the loan proceeds will be used to sustainably enhance the company's assets and the communities it works in.
The SL loan features a two-tier incentive mechanism where GLP will be entitled to an interest rate reduction when targeted improvements in its environmental, social and governance (ESG) performance score are achieved.
The SL loan is tied to GLP's latest Sustainalytics ESG risk rating. The company's green finance framework - which covers its future green use-of-proceeds bond and loan issuances - is aligned with the Green Bond Principles 2018, the Green Loan Principles 2020 and the Asean Green Bond Standards 2018. ING was the sole advisor to GLP for the framework.
"The size of the facility is a testament to GLP's ongoing commitment to driving the sustainability agenda and we are encouraged by the high levels of investor interest," Mr Tey said.
ING head of real estate finance Robert Scholten said: "Despite the general economic fallout from the Covid-19 pandemic, the Asia-Pacific's real estate sector remains a bright spot, where logistics has proven to be among the most resilient asset classes in 2020.