ESR Cayman Secures $218M Sustainable Loan

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ESR Cayman, an Asia-focused warehousing company backed by Warburg Pincus, secured a sustainability-linked loan of S$300 million ($218 million) to be used for refinancing, working capital and other purposes.

This is the fourth sustainable loan signed by the group in the past six months.

The five-year unsecured facility has the same tiered incentive mechanism as the recent $1 billion and 28 billion yen ($219 million) ESR loans, which closed in November 2021 and January 2022, respectively.

ESR will be entitled to an interest rate reduction currently at the Singapore Overnight Mid Rate plus 1.65%.

Jeffrey Perlman, chairman, said ESR has closed nearly $2.5 billion in sustainable loans.

ESG benchmarks

He said ESR was the largest real estate asset manager in the Asia-Pacific region and that the approval of its sustainable loans indicated its adherence to environmental, social and governance (ESG) criteria.

“We are committed to leading the industry and investing and operating responsibly by integrating ESG factors into all aspects of our operations,” Perlman said.

United Overseas Bank was the sole global coordinator and acted with Maybank as mandated lead arrangers and sustainability advisors.

In 2019, ESR Cayman raised $1.6 billion after increasing the size of its relaunched initial public offering in Hong Kong.

Investors see ESR as a game on the growing e-commerce industry in China and elsewhere in Asia.

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george russell

George Russell is a Hong Kong-based freelance writer and editor who has lived in Asia since 1996. His work has appeared in the Financial Times, Wall Street Journal, Bloomberg, New York Post, Variety, Forbes, and South China Morning Post. . .

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