ESR-REIT Secures S$300 Million Sustainable Development-Linked Unsecured Term Loan and Revolving Credit Facility

Smart Web News: On March 19, ESR-REIT Management (S) Limited, the manager of ESR-REIT, announced that its trustee, Perpetual (Asia) Limited, has signed a S$300 million (SGD 300,000,000) sustainability-linked unsecured term loan and revolving credit facility agreement (“S$300M SL Facility Agreement”) with several banks on behalf of ESR-REIT. The main participants in the agreement include DBS Bank Ltd. and Oversea-Chinese Banking Corporation Limited as arrangers and lenders, with Oversea-Chinese Banking Corporation Limited also serving as facility agent and sustainability coordinator.

The credit facility consists of two parts: a S$150 million sustainability-linked term loan and a S$150 million sustainability-linked revolving credit line. The funds raised will mainly be used for general corporate purposes, including but not limited to repaying existing debt, financing asset acquisitions and improvements, meeting working capital needs, and paying fees and other transaction costs related to the credit facility.

The agreement sets clear termination dates: 60 months after the first drawdown for the term loan portion (Facility A), and 24 months after the first drawdown for the revolving credit portion (Facility B). Notably, this credit arrangement is unsecured and involves no collateral.

The agreement also includes specific provisions regarding management changes and changes in the shareholding ratio of the controlling shareholder. If ESR-REIT’s management resigns or is dismissed without the majority of lenders’ written consent, and fails to appoint new management acceptable to the majority of lenders within the specified time, or if ESR Group Limited no longer directly or indirectly holds at least 50.1% of the issued share capital of the management, and this occurs without prior written consent from the majority of lenders, it will trigger the cancellation of loan commitments or the requirement to immediately repay all outstanding loans and accrued interest.

As a leading New Economy and future-ready Asia-Pacific real estate investment trust listed on the Singapore Exchange, ESR-REIT focuses on investing in high-quality income-generating industrial properties in major gateway markets. As of December 31, 2025, its portfolio includes logistics properties, high-spec industrial properties, business parks, and general industrial properties, with total assets of approximately S$5.9 billion, located in Singapore, Australia, and Japan. ESR-REIT has been rated “BBB” by Fitch Ratings with a stable outlook and is included in multiple global and regional real estate indices.