Frasers Property : Secures First Sustainability-linked GBP110 Million Loan for UK Business

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28 Jan 2022

Frasers Property Group Secures First Sustainability-linked GBP110 Million Loan for UK Business

• Early-mover in the UK real estate sector for sustainability-linked loans with interest cost reduction mechanism based on maintaining Frasers Property (UK) Limited's four-star GRESB rating
• Latest transaction further strengthens the Group's portfolio with green and sustainability-linked financing in more markets

Singapore, 28 JANUARY 2022

Frasers Property Limited ("Frasers Property", and together with its subsidiaries, the "Group") today announced that its subsidiaries, Frasers Property (UK) Limited ("FPUK") and Hillington Park S.à r.l., have jointly secured a GBP110 million five-year bilateral sustainability linked loan ("SLL"). This transaction marks the first sustainability linked loan for the Group in the UK, in line with the Sustainability Linked Loan Principles dated May 2021 and updated in July 2021[1].

The SLL will bring a reduction in interest margin from its second year if FPUK maintains its four-star Global Real Estate Sustainability Benchmark ("GRESB") rating. In 2021, FPUK topped the local market's Office/Industrial category for standing investments with a score of 85, against the peer average of 68.

Mr Loo Choo Leong, Group Chief Financial Officer of Frasers Property, said, "With this transaction, we are continuing on our journey towards our goal of financing the majority of our new asset portfolio with green and/or sustainable financing by 2024. Being an early-mover in the UK real estate sector for sustainability-linked loans tied to a GRESB rating helps us raise sustainability ideals across our value chain."

At the 2021 GRESB rankings, the Group achieved five global and regional sector leadership positions. To provide more targeted sector benchmarking and evaluation purposes, all listed and non-listed business units -- including its five REITs -- across its markets participated in individual GRESB submissions in the standing investment categories last year. Relevant entities also took part in the development categories.

The Group is one of the major international investors in the UK business park sector. It has steadily grown its portfolio of award-winning campus-style business spaces, which now comprises 520,000 square metres of net leasable area across six UK business parks. In 2021, FPUK, a fully integrated developer, investor and asset manager of residential and commercial property, launched The Rowe, its first urban office development in Whitechapel, London, next to the tech hub at Shoreditch.

FPUK is aiming for net-zero carbon in all landlord-controlled areas by 2030, as part of the Better Buildings Partnership Climate Change Commitment that is aligned to the Science Based Targets initiative. As part of its five sustainability goals unveiled in January 2021, the Group has a commitment to be a net-zero carbon organisation, inclusive of Scopes 1, 2 and 3 emissions, by 2050.

This SLL is a bilateral facility from Malayan Banking Berhad, Singapore Branch, or familiarly known as Maybank Singapore, which is also the Sustainability Linked Loan Coordinator. Together with this SLL, the Group, including subsidiaries and associated entities, has secured 25 green or sustainability-linked loans, and two sustainability bonds, raising more than SGD6 billion in total.

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[1] Jointly issued by the Loan Market Association, the Asia Pacific Loan Market Association and the Loan Syndications and Trading Association.