CapitaLand Ascott Trust Secures OCBC 1.5°C Loan

Dark/Light Mode (07/08/24)  CapitaLand Ascott Trust (CLAS) has secured an OCBC 1.5°C loan.

With this SG$165 million sustainability-linked multi-currency revolving credit facility, CLAS will receive interest rate reductions upon meeting the agreed annual greenhouse gas (GHG) emissions reduction targets. Proceeds of the facility will be utilised for general corporate purposes.

CLAS’ GHG emissions reduction targets are aligned with its sponsor CapitaLand Investment’s (CLI) 2030 Sustainability Master Plan which has committed to achieve net zero emissions by 2050 for its Scope 1 and 2 GHG emissions, and targets to reduce absolute Scope 1 and 2 GHG emissions by 46% by 2030, using 2019 as the base year.

Rooftop garden at La Clef Tour Eiffel hotel in Paris, France

These targets were validated in 2022 by the internationally recognised Science Based Targets initiative (SBTi) to be in line with a 1.5°C trajectory, in alignment with the goals of the Paris Agreement.

The OCBC 1.5°C loan reflects OCBC’s longstanding commitment to support customers on their net zero journeys with transition advisory and innovative financing solutions. As at 30 June 2024, OCBC’s sustainable financing loans had grown 33% from a year ago, and total sustainable financing loan commitments stood at S$63.3 billion.

“We are pleased to support CLAS and its decarbonisation ambitions with our OCBC 1.5°C loan,” said Elaine Lam, Head of Global Corporate Banking, OCBC. “We launched this financing solution last year to incentivise corporates to set and work towards clear carbon emissions reduction targets aligned with internationally recognised, science-based Net Zero decarbonisation pathways for their sectors. Despite macroeconomic challenges, it has been very encouraging to see more companies across various sectors in the region chart out their Net Zero journeys and setting SBTi-aligned decarbonisation targets. For those companies that are not quite as advanced yet, we have been actively engaging them on their transition plans and viable next steps to take. We are committed to support their Net Zero ambitions and the shift to a low-carbon future.”

Classic Room at La Clef Tour Eiffel hotel in Paris (16eme), France

As at May 2024, CLAS has greened 51% of its global portfolio (by gross floor area), higher than its target to green 50% of its portfolio by 2025, and is on track to green 100% of its portfolio by 2030.

At the end of 2023, CLAS also made significant progress towards its decarbonisation goals, reducing its absolute Scope 1 and 2 emissions by 15.5% and achieved a 6.9% reduction in energy consumption intensity against its 2019 baseline.

“At CLAS, sustainability is a key focus and priority in everything we do. It is integrated throughout our business, including our capital management strategy,” said Serena Teo, Chief Executive Officer of CapitaLand Ascott Trust Management Limited and CapitaLand Ascott Business Trust Management Pte. Ltd. (the Managers of CLAS). “Leveraging CLAS’ leadership in sustainability, we are able to dovetail our environmental efforts with our financing needs. With this facility, CLAS has secured a total of over S$700 million in sustainable financing to date. We continue to collaborate with like-minded stakeholders in the banking and finance industry to do good, as we deliver long-term value to our Stapled Securityholders.”

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