CapitaLand Ascott Trust Secures OCBC 1.5°C Loan

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(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.”

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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