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Singapore-based Keppel REIT in $110m green loan from OCBC

Listed landlord plans to expand its environmentally friendly building portfolio

Keppel REIT is one of Asia's leading real estate investment trusts with a portfolio of Grade-A commercial assets in such cities as Singapore, Sydney and Seoul.   © Reuters

CEBU, Philippines -- Singapore-listed Keppel REIT has obtained an unsecured S$150 million ($110 million) green loan facility from Oversea-Chinese Banking Corp., its second such facility this year, to grow its green building portfolio.

In a disclosure to the Singapore Exchange, Keppel REIT's manager said the green loan facility can be utilized to finance or refinance eligible green projects, among others. The loan was obtained by its subsidiary, Keppel REIT Fin Company (KRFC).

In June, the listed commercial office landlord obtained a S$505-million green loan facility through subsidiary Ocean Properties.

The real estate investment trust has also established the Keppel REIT Green Loan Framework, in line with green loan principles from the Loan Market Association and the Asia Pacific Loan Market Association, on the use of proceeds, project evaluation and reporting, its filing said.

"Our Green Loan Framework will provide a clear and structured guide for Keppel REIT as we grow our proportion of green funding sources in our continued drive to build a sustainable future," said Paul Tham, CEO of Keppel REIT Management, manager of the $6-billion REIT.

Under the terms and conditions of the Green Loan Facility agreement, OCBC may give notice to KRFC as the borrower to prepay any outstanding loans if the manager of Keppel REIT ceases to be 100% directly and/or indirectly owned by Keppel Corp.

Keppel REIT is one of Asia's leading REITs with a portfolio of Grade-A commercial assets in Singapore and the Australian cities of Sydney, Melbourne, Brisbane and Perth, as well as Seoul, South Korea.

All of Keppel REIT's Singapore assets are certified Platinum under the Building and Construction Authority's Green Mark Scheme. The scheme was launched in January 2005 as an initiative to drive Singapore's construction industry toward more environmentally friendly buildings.

Most of its operational buildings in Australia have also achieved five-star ratings from the National Australian Built Environment Rating System (NABERS) Energy, the REIT said.

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