ESR-REIT has entered into a S$200 million sustainability-linked unsecured revolving credit facility agreement. The deal was signed by Perpetual (Asia) Limited, acting as the trustee for the real estate investment trust.

Oversea-Chinese Banking Corporation Limited (OCBC) is serving as the sole lender for the arrangement. OCBC has also taken on the role of sustainability coordinator for the deal.

The unsecured credit line has a maturity date set 24 months after the initial utilisation date. The manager of the trust, ESR-REIT Management (S) Limited, has outlined clear plans for the funding. The capital will go toward general corporate funding purposes across ESR-REIT and its subsidiaries.

Specifically, the funds will be used to refinance current group debt and cover transaction expenses. The trust will also use the money for working capital and to fund asset acquisitions, enhancements and improvements.

The agreement includes specific rules regarding the control of the manager. OCBC has the right to request good-faith review discussions if the manager resigns or is removed without written consent. This also applies if a replacement manager is not appointed by the effective date of the change.

Furthermore, discussions can be triggered if ESR Group Limited stops holding at least 50.1% of the manager’s issued share capital without prior written approval.

Should the trustee fail to submit an acceptable proposal during these reviews, OCBC can cancel the commitment. The bank may also demand immediate repayment of all outstanding loans.

If a proposal is accepted but the trustee fails to execute it within the agreed Remedy Period, the facility will face immediate cancellation. In that event, the trustee must repay all owing amounts within 15 days of cancellation. The maximum principal amount affected by these change-of-control conditions is up to S$200 million.