Sep 28, 2023 | Posted by Abdul-Rahman Oladimeji
The Keppel DC REIT Management Pte. Ltd. Board of Directors announced that one of its DC campuses recently secured a S$120 million (US$87.7m) sustainability-linked Islamic credit facility.
The company didn’t reveal details relating to the loan providers, intended loan uses, or sustainability targets other than the facility is guaranteed by Perpetual (Asia) Limited, a trustee of Keppel DC. However, SSLs are loan facilities where repayment rates are tied to sustainability goals. Hence, the company’s repayment on the loan becomes lower the more it meets the sustainability targets initially agreed upon by both parties.
SLL financing is becoming a trend among data centers and telecommunication firms. Many industry giants have raised new green-tied funds or converted existing debt to include interest rates tied to sustainability and ESG goals. This includes the likes of Equinix, Aligned, NTT, AirTrunk, Flexentia, ESR and SunEvision.
