ESR nets $243 million with sustainability-linked loan

Investment manager ESR Group has secured its third sustainability-linked loan, of ¥28 billion ($243 million).

The five-year senior unsecured, committed corporate facility was extended by a consortium of Japanese banks, including Sumitomo Mitsui Banking Corporation and Mizuho Bank. ESR will be entitled to a reduction of the interest rate (initially TIBOR plus 1.8%) as sustainability targets are achieved.  ESR would not reveal the specific targets and potential interest rate reductions.

Jeffrey Perlman, chairman of ESR, said: “ESG sits at the heart of our business, playing a key role in each and every part of our operations. As the largest real asset manager in APAC, we have a strong sense of common purpose and a vision to focus on the well-being and long-term priorities of our broader community and environment.”

The proceeds will be used to fund the group’s refinancing of existing borrowings, working capital requirements and for general corporate purposes. The loan amount can be increased to ¥35 billion. ESR secured its first, $1 billion, sustainability-linked loan in November 2021. 

Previously an Asia Pacific logistics real estate specialist, ESR completed the acquisition of Singapore-based ARA Asset Management in January, creating Asia’s largest real estate investment manager, with $140 billion of assets under management in Asia Pacific, Europe and the US.