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ESR secures $146 million sustainable loan

5th March 2024

ESR has closed a ¥JPY 22 billion ($146m) cross-border syndicated Sustainability-Linked Loan (SLL).

The loan is the first of its kind for the Hong Kong-listed real estate investment manager and brings its total SLL financing to approximately $4.4 billion. It has a tiered incentive mechanism where ESR will be entitled to an interest reduction when sustainability targets are achieved.  

The proceeds will be used for refinancing of existing borrowings, investments, working capital and general corporate purposes. The loan consists of five and seven year tranches and it is a unsecured, committed facility.

Mizuho Bank acted as sole mandated lead arranger and bookrunner, as well as sole sustainability coordinator.

Jeff Shen and Stuart Gibson, co-founders and co-CEOs of ESR said: “ESR is committed to integrating sustainability into our business. Our latest SLL underpins our ESG efforts, marking yet another step towards our sustainability and financial goals in tandem. 

“ESR remains focused on striving to not only enhance the performance of our assets and operations, but also lead and set the standard for sustainable development of our industry.”

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