OCBC Bank and CapitaLand signed loan facility agreement referencing Singapore Overnight Rate Average (SORA). The SGD 150 million three-year corporate loan from OCBC Bank to CapitaLand is a milestone in the industry's transition roadmap towards adopting SORA as the new interest rate benchmark for the Singapore Dollar cash and derivatives markets. The SGD 150 million loan is part of SGD 300 million sustainability-linked loan extended by OCBC Bank to CapitaLand. Proceeds from the facility will be used for general corporate purposes. The loan facility's interest rate, which references SORA, comprises two components: compounded average of daily SORA rates calculated in arrears and an applicable margin. SORA is a backward-looking overnight rate as compared to forward-looking reference rates commonly used for loan facilities in Singapore, such as the SGD Swap Offer Rate (SOR) where the interest rate is determined at the start of the interest period. To determine the interest rate of a SORA-based loan facility, the daily SORA rates are compounded in arrears and the interest rate is determined by the end of the relevant interest period.