CapitaLand India Trust Secures S$200 Million Sustainability-Linked Loan from International Finance Corporation

CapitaLand India Trust (CLINT) recently announced securing a sustainability-linked loan (SLL) of S$200 million from the International Finance Corporation (IFC), a member of the World Bank Group. This move underscores CLINT's commitment to sustainable finance and its goal of achieving Net Zero carbon emissions.

The S$200 million SLL from IFC increases CLINT's sustainable finance to S$1.16 billion, accounting for 79% of its total loans. This financing will be utilized to re-finance CLINT's existing revolving credit facilities (RCFs), unlocking additional availability of the RCFs, reducing finance costs, and diversifying funding sources.

Two key performance indicators (KPIs) have been established for this SLL. The first KPI aims to reduce the absolute greenhouse gas (GHG) emissions of CLINT's IT business park portfolio by 40.5% from the baseline year of 2019 by the end of the 5-year loan term. The second KPI involves obtaining Excellence in Design for Greater Efficiencies (EDGE) certification for three selected IT business parks by 2026.

Sanjeev Dasgupta, Chief Executive Officer of CapitaLand India Trust Management Pte. Ltd., expressed the significance of tying sustainability performance with financing, emphasizing CLINT's dedication to responsible growth and its long-term goal of achieving Net Zero carbon emissions for Scope 1 and 2 by 2050.

Additionally, CLINT may pursue the development and acquisition of land or uncompleted developments primarily for business space use, with the intention of holding the properties upon completion. As of March 31, 2024, CLINT's assets under management amounted to S$3.1 billion.

This move by CLINT highlights the growing emphasis on sustainability in the real estate sector and sets a precedent for other entities to integrate environmental considerations into their financing strategies.