ESR Cayman, an Asia-focused warehousing company backed by Warburg Pincus, has secured a S$300 million ($218 million) sustainability-linked loan to be used for refinancing, working capital and other purposes.
It is the fourth sustainability loan signed by the group in the past six months.
The five-year unsecured facility has the same tiered incentive mechanism as ESR’s recent $1 billion and 28 billion yen ($219 million) loans, which closed in November 2021 and January 2022, respectively.
ESR will be entitled to an interest rate reduction currently at the Singapore Overnight Rate Average plus 1.65%.
Jeffrey Perlman, chairman, said ESR has closed nearly $2.5 billion in sustainability loans.
He said ESR was the largest real asset manager in the Asia-Pacific region, and approval of its sustainability loans indicated its adherence to environmental, social and governance (ESG) benchmarks.
“We are committed to leading the industry and investing and operating responsibly by incorporating ESG factors into all aspects of our operations,” Perlman said.
United Overseas Bank was sole global coordinator, and acted with Maybank as mandated lead arrangers and sustainability advisers.
In 2019, ESR Cayman raised $1.6 billion after increasing the size of its revived Hong Kong initial public offering.
Investors view ESR as a play on the growing e-commerce industry in China and elsewhere in Asia.
- George Russell