CapitaLand has secured a five-year, $300 million sustainability-linked loan, said to be the first and largest in Asia’s real estate sector, from DBS Bank. The multi-currency loan is linked to the developer’s listing on the Dow Jones Sustainability World Index (DJSI World), which tracks established firms in areas such as environmental, social and governance (ESG) efforts. Unlike green loans, where the funds are used for certain types of projects, CapitaLand is able to use the loan for general corporate purposes. Meanwhile, interest rates on the loan “will be further reduced on a tiered basis, contingent on CapitaLand’s ongoing performance” against a set of ESG indiators based on RobecoSAM’s Corporate Sustainability Assessment and a listing on the DJSI World. 

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The Straits Times