Date of Report
17 September 2024
Broker
Maybank Research Pte. Ltd.
Sustainability-Linked Loan Announcement
AIMS APAC REIT (AA REIT) announced a new unsecured sustainability-linked loan (SLL) valued at up to SGD 400 million and AUD 150 million. The loan is designed with sustainability margin adjustments that are tied to AA REIT’s performance in achieving pre-determined sustainability targets.
Purpose of Loan
The proceeds from the sustainability-linked loan will be allocated towards:
- Refinancing the existing Group indebtedness
- General corporate purposes
- Working capital requirements
- New growth initiatives, which include acquisitions, asset enhancement initiatives (AEIs), and developments
Debt Maturity Extension
The successful execution of this SLL will extend AA REIT’s average debt maturity from 2.1 years to over 3 years as of the end of June 2024.
Impact on Debt Structure
Following the refinancing, the proportion of unsecured debt in AA REIT’s overall debt structure will increase to over 50% of its total debt.
