PLife REIT Launches Maiden Social Loan and Inaugural Green Bond; Eliminates Near-Term Refinancing Risks

Key Milestones in Sustainable Financing with Immediate Impact on Capital Structure and Debt Maturity Profile

Parkway Life Real Estate Investment Trust (PLife REIT) has taken significant steps in its sustainable financing journey by securing its first ever social loan and issuing its inaugural green bond under a newly established Sustainable Financing Framework. These developments are set to strengthen the REIT’s capital position, extend its debt maturity profile, and reinforce its sustainability credentials at a time when demand for healthcare and aged care infrastructure is increasing.

Key Highlights from the Announcement

• Maiden 10-year JPY8.8 Billion Social Loan: PLife REIT has obtained a 10-year, JPY8.8 billion (about S\$72 million) unsecured loan from DBS Bank. This marks the REIT’s first foray into social loans, supporting the financing of healthcare and aged care infrastructure in Japan.
• Inaugural S\$70 Million Green Bond: The REIT has priced a 5-year S\$70 million green bond at a fixed coupon of 2.103%. The bond, to be issued on 27 February 2026, is managed by United Overseas Bank (UOB).
• Complete Pre-Emptive Refinancing: Proceeds from both the social loan and the green bond will be used to fully refinance existing loans maturing in Q4 2026. This eliminates any long-term debt refinancing requirements until at least March 2027.
• Extended Debt Maturity Profile: Following the refinancing, PLife REIT’s weighted average debt term to maturity will lengthen from 3.0 years to approximately 4.1 years, significantly strengthening its capital structure and enhancing financial flexibility.
• Strong Commitment to ESG: Both financings are aligned with internationally recognised sustainable finance principles, allowing capital to be channelled towards projects with positive environmental and social impact.

Details of the Sustainable Financing Initiatives

Social Loan – Supporting Healthcare and Aged Care Infrastructure

The 10-year JPY8.8 billion (S\$72 million) social loan from DBS Bank will be used to refinance an existing loan that funded the acquisition of nursing homes in Japan. This transaction is significant as it qualifies as an eligible social project under PLife REIT’s Sustainable Financing Framework. The financing directly supports the rising demand for healthcare and aged care services in Japan’s ageing society while helping to alleviate pressures on the public healthcare system.

Notably, this is DBS Bank’s first social loan in the healthcare sector and marks a rapid translation of PLife REIT’s sustainability commitments into on-the-ground impact.

Green Bond – Advancing Sustainable Healthcare Real Estate

The S\$70 million green bond, with a 5-year tenor and an attractive coupon of 2.103%, will be used to term out an existing loan that financed “Project Renaissance,” a renewal capex program at Mount Elizabeth Hospital (MEH). Importantly, these upgrades are expected to help MEH achieve the BCA Green Mark Platinum certification, Singapore’s highest accolade for sustainable buildings. This demonstrates PLife REIT’s proactive approach to responsible capital deployment and measurable environmental benefits across its portfolio.

UOB acted as the sole lead manager and bookrunner for this green bond issuance.

Potentially Price-Sensitive and Shareholder-Relevant Information

• Elimination of Near-Term Refinancing Risk: By pre-emptively refinancing all loans maturing in Q4 2026, PLife REIT eradicates its long-term debt refinancing needs until at least March 2027. This could materially reduce refinancing risk and interest rate volatility over the medium term, a positive for risk-averse investors.
• Strengthened Balance Sheet and Improved Financial Flexibility: The extension of average debt maturity from 3.0 years to 4.1 years enhances the REIT’s financial resilience and flexibility, which could be viewed favourably by credit markets and equity investors.
• Reinforcement of ESG Credentials: These developments could attract ESG-focused investors and funds, potentially broadening the investor base and supporting unit price appreciation.
• Signalling of Strong Credit Fundamentals: The ability to secure a 10-year loan (the REIT’s first of such tenor) demonstrates lender confidence in PLife REIT’s long-term credit profile.
• Alignment with Growing Healthcare Demand: The financing directly supports expansion in healthcare and aged care infrastructure, a sector poised for growth amid demographic shifts in Asia and Europe.

About PLife REIT

PLife REIT is one of Asia’s largest listed healthcare real estate investment trusts, with a portfolio of 74 properties valued at approximately S\$2.57 billion as of 31 December 2025. Its assets include Singapore’s largest portfolio of private hospitals (Mount Elizabeth, Gleneagles, Parkway East), 60 nursing homes and care facilities in Japan, and 11 nursing home assets across six regions in France. The REIT invests in income-producing real estate primarily used for healthcare purposes.

Conclusion

The refinancing initiatives and the launch of the Sustainable Financing Framework represent a meaningful step forward in PLife REIT’s strategy to future-proof its capital structure and reinforce its leadership in sustainable healthcare real estate. Investors should closely monitor the impact of these transactions on the REIT’s funding costs, portfolio growth, and ESG positioning, as they could drive future share price performance.

Disclaimer: This article is for informational purposes only and does not constitute an offer or invitation to purchase or subscribe for any units in Parkway Life Real Estate Investment Trust. Investments in REITs are subject to investment risks, including the possible loss of principal. Past performance is not indicative of future results. Please consult your financial advisor before making any investment decisions.

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