SINGAPORE (EDGEPROP) - Keppel REIT has obtained a total of A$300 million ($298.6 million) in green loans from United Overseas Bank (UOB) and BNP Paribas. These loans will be partially used towards the financing of the acquisition of Pinnacle Office Park, a freehold Grade A commercial property located within Macquarie Park in Sydney, which is expected to complete in 4Q2020. They follow the $655 million in green loan facilities obtained by Keppel REIT last year.

Read more: Keppel Reit acquires Grade A office building in Seoul

Assuming all green loan facilities were obtained and fully drawn on Sept 30, the green loans would have represented about 26% of Keppel REIT’s attributable share of total borrowings as of Sept 30.

Paul Tham, CEO of Keppel REIT Management, says, “We are committed to strengthen our green funding sources UOB and BNP Paribas, the latter a long time Keppel REIT tenant.”

Both the UOB and BNP Paribas green loan facilities adhere to the Keppel REIT Green Loan Framework, which is in line with the four Green Loan Principles (2018) administered by the Loan Market Association and the Asia Pacific Loan Market Association.

This means that the money must be used for projects with clear environmental benefits, clear sustainable objectives, a dedicated account and borrowers must report on the use of proceeds to be reviewed annually.