PLife REIT Secures Maiden Social Loan and Issues Inaugural Green Bond Under New Sustainable Financing Framework

Key Developments

• First Social Loan: PLife REIT has secured its first-ever 10-year JPY8.8 billion (approx. S\$72 million) committed and unsecured social loan from DBS Bank Ltd. This long-term facility will support the refinancing of healthcare and aged care infrastructure, directly contributing to strengthening healthcare systems and reducing the burden on public services in Japan.
• Inaugural Green Bond: The trust has also successfully priced its inaugural 5-year S\$70 million green bond at a fixed-rate coupon of 2.103%. The Series 009 Notes will be issued on 27 February 2026, with United Overseas Bank Limited (UOB) acting as sole lead manager and bookrunner.
• Debt Refinancing Strategy: The combined proceeds from the social loan and green bond will be fully deployed to refinance PLife REIT’s loans maturing in Q4 2026. This pre-emptive move eliminates any long-term debt refinancing needs until March 2027, extending the weighted average debt term to maturity from 3.0 years to approximately 4.1 years.

Details for Investors and Shareholders

• Strengthening Financial Flexibility: By refinancing ahead of schedule and securing a 10-year loan, PLife REIT demonstrates strong long-term credit fundamentals, aligning its funding strategy with the long-term needs of supporting resilient healthcare infrastructure.
• Commitment to Sustainability: This marks the REIT’s first sustainable financing transaction under its newly established Sustainable Financing Framework, which aligns with internationally recognised sustainable finance principles. The framework allows PLife REIT to channel capital towards projects delivering measurable environmental and social outcomes.
• Social Loan Impact: The social loan will be used to refinance debt related to the acquisition of nursing homes in Japan. These assets qualify as eligible social projects, addressing the growing demand for healthcare and aged care in aging societies and relieving stress on national healthcare systems.
• Green Bond Impact: Proceeds from the green bond issuance will refinance a loan used for Project Renaissance, renewal capital expenditure works at Mount Elizabeth Hospital (MEH) in Singapore. MEH is on track to achieve the BCA Green Mark Platinum certification, Singapore’s highest accolade for green buildings, highlighting the REIT’s commitment to responsible capital deployment and measurable environmental benefits.
• Portfolio and Market Position: As of 31 December 2025, PLife REIT manages a diversified portfolio of 74 properties valued at approximately S\$2.57 billion. These include premier private hospitals in Singapore (Mount Elizabeth, Gleneagles, Parkway East), 60 nursing home and care facility properties in Japan, and 11 nursing homes in France.

Potential Price Sensitive Information

• Elimination of Near-Term Refinancing Risk: With no long-term refinancing needs until March 2027, PLife REIT substantially mitigates refinancing risk, bolstering its financial stability and flexibility—a key factor for investor confidence and potential positive share price movement.
• Successful Access to Long-Term Capital: The ability to secure a 10-year loan and issue a competitively priced green bond amid current market conditions signals strong lender and investor confidence.
• Commitment to ESG Principles: The move is likely to enhance PLife REIT’s appeal to ESG-focused investors, potentially expanding its investor base and supporting share value.

Management Commentary

Mr. Yong Yean Chau, CEO and Executive Director:
“These refinancing exercises mark an important milestone in PLife REIT’s sustainable financing journey, showcasing not only our inaugural green bond and social loan that reinforces our sustainability commitment, but also our ability to secure our first 10-year loan, signalling strong long-term credit fundamentals. This aligns our funding strategy with our long-term commitment to supporting resilient healthcare infrastructure.”

Dr. Eugene Hong, DBS:
“This transaction demonstrates how a well-structured sustainable financing framework can move quickly from intent to impact, translating sustainability commitments into tangible outcomes. We are pleased to play a key role in supporting PLife REIT’s inaugural Sustainable Finance Framework and its first social loan, which is also DBS’ first social loan issuance for the healthcare sector.”

Mr. Edmund Leong, UOB:
“We are pleased to support PLife REIT’s inaugural green bond issuance, which reflects the Manager’s commitment to sustainability. This transaction demonstrates how capital markets solutions can support issuers in achieving both financial and sustainability goals, while contributing to the development of sustainable healthcare infrastructure.”

Strategic Implications for PLife REIT

The launch of the Sustainable Financing Framework and the successful completion of these refinancing exercises position PLife REIT as a leader in sustainable finance within the healthcare REIT sector. By locking in long-term, attractively priced capital and aligning its portfolio with ESG objectives, the trust is poised to deliver both financial and sustainability-driven value to its stakeholders.

Disclaimer

This article is for informational purposes only and does not constitute investment advice, an invitation, or an offer to acquire, purchase, or subscribe for units in Parkway Life Real Estate Investment Trust (PLife REIT). The value of units and income derived from them may fall as well as rise. Investors are advised to conduct their own due diligence and consult their financial advisors before making any investment decisions. Past performance is not indicative of future results. PLife REIT units are subject to investment risks, including possible loss of principal.

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