Asia-Pacific real asset manager ESR has chosen to exercise an upsize option on its sustainability-linked refinancing facility after exceeding its initial US$2 billion target. Strong demand from a syndicate of international lenders prompted the expansion, reflecting confidence in the firm’s commercial direction.

The five-year multi-currency facility merges several existing loan agreements into a single structure. The deal was fully underwritten by major banking partners, including HSBC, Mizuho, Qatar National Bank (Q.P.S.C.) Singapore Branch, UOB, Maybank and OCBC. The agreement has expanded ESR’s funding base by introducing new relationships across Europe and the Middle East alongside its established partners in the Asia-Pacific region.

“This refinancing is a tangible demonstration of ESR’s disciplined approach to capital management for long-term growth. The oversubscription reflects strong lender conviction in our sharpened strategy and positions us to move decisively on the opportunities we see across logistics real estate and data centres. We thank our banking partners for their continued support and trust in ESR,” said Matthew Lawson, Chief Financial Officer at ESR.

The arrangement improves financial flexibility for ESR as it expands its primary logistics real estate and data centre operations. It also supports expansion into adjacent energy infrastructure sectors in key Asia-Pacific markets.

The transaction builds on previous debt reduction measures. ESR cleared approximately US$1.1 billion in net debt repayments during 2025, and management intends to execute further deleveraging actions throughout 2026.

By streamlining its debt structure and focusing on core assets, the group aims to simplify its business model. The company plans to use its Asia-Pacific network to secure long-term commercial opportunities and generate value for capital partners and clients across the region.