ESR Group Limited, APAC’s largest real asset manager powered by the New Economy, announced today the closing of its first cross border JPY syndicated Sustainability-Linked Loan (“SLL”).

This is the 10th SLL which ESR has closed, reinforcing the Group’s leadership in sustainable financing and operations. To date, the Group has closed a total of approximately US$4.4 billion in SLL, as it continues to integrate Environmental, Social and Governance (ESG) into its financial management, operations and future planning.

In support of ESR’s efforts to further strengthen its ESG commitments, Mizuho Bank, LTD (“Mizuho”) acted as the sole mandated lead arranger and bookrunner, as well as sole Sustainability Coordinator.

The SLL consists of five and seven year tranches, and it is a unsecured, committed facility. The loan is 1.7 times covered above the original syndication target and has a tiered incentive mechanism where ESR will be entitled to an interest reduction when the Group’s sustainability targets are achieved. The proceeds will be used to fund the Group’s refinancing of existing borrowings, investments, working capital and general corporate purposes.

Jeff Shen and Stuart Gibson, Co-founders and Co-CEOs of ESR said: “As the leading real asset manager and largest New Economy real estate platform in APAC, ESR is committed to integrating sustainability into our business. We are proud of the great progress ESR has attained across multiple aspects as set out in the Group’s ESG 2030 Roadmap, including sustainable financing, green building certifications, generation of renewable energy, and community engagement. We thank Mizuho for their support of ESR’s commitment to responsible growth. Our latest SLL underpins our ESG efforts, marking yet another step towards our sustainability and financial goals in tandem. ESR remains focused on striving to not only enhance the performance of our assets and operations, but also lead and set the standard for sustainable development of our industry.”

In line with the Group’s purpose ‘Space and Investment Solutions for a Sustainable Future’, ESR is committed to leveraging its strengths and resources to constantly enhance its ESG performance to create long-term value for stakeholders. In May 2023, ESR unveiled its ESG 2030 Roadmap to accelerate positive impact for a sustainable future. The Group’s ESG 2030 Roadmap covers three key pillars under its ESG Framework: creating a Human Centric environment that is safe, supportive and inclusive for internal and external stakeholders; developing and maintaining a sustainable and efficient Property Portfolio; and delivering outstanding Corporate Performance for sustained and balanced growth with highest standards of governance. To learn more about the ESG initiatives and targets of ESR, please visit: https://www.esr.com/environmental-social-governance/

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