Prosperity REIT Closes its Maiden Sustainability-linked Loan with DBS Hong Kong

Hong Kong, 19 July 2021 – ARA Asset Management (Prosperity) Limited (the “REIT Manager”), the manager of Prosperity Real Estate Investment Trust (“Prosperity REIT”) (Stock Code: 808), announced today they have secured its maiden five-year HK$800 million sustainability-linked term loan with DBS Bank Ltd., Hong Kong Branch (“DBS”). The loan proceeds will be used for refinancing and general corporate funding purposes. This marks an important milestone for Prosperity REIT in sustainable finance, echoing the REIT’s commitment towards its “Sustainability Vision 2030”.

Prosperity REIT will be eligible for loan interest savings upon achieving pre-determined environmental, social and governance (ESG) performance metrics with emphasis on:

• Prosperity REIT will be eligible for loan interest savings upon achieving pre-determined environmental, social and governance (ESG) performance metrics with emphasis on:
• Reduction in energy consumption and greenhouse gas emissions from the REIT’s property management operations; and
• Promoting the use of renewable energy through installation of solar panels and rainwater collection systems at selected properties

Driven by the REIT’s “Sustainability Vision 2030” initiative, Prosperity REIT strives to align its ESG roadmap with the United Nations Sustainable Development Goals by closely monitoring the implementation and progress of targets under four key pillars: Nature, People, Building/Services and Community. Over the years, Prosperity REIT actively manages the environmental performance of its operation and received various professional recognitions and awards, including an Excellent Grade of BEAM Plus Existing Building (Energy Use) awarded by Hong Kong Green Building Council in 2020.The financial incentive will reinforce the REIT’s commitment to long-term sustainability.

Mr. Alex Cheung, Managing Director of Head of Institutional Banking Group in DBS, said, “We are delighted to advise and support Prosperity REIT as they forge ahead on their journey towards sustainability. As we continue to pursue our sustainability goals with SGD 50 billion commitment this year towards sustainable finance, we look forward to forging more collaborations with like-minded partners like Prosperity REIT who are accelerating towards more carbon efficient operations and a better future.”

Ms. Mavis Wong, CEO and Executive Director of the REIT Manager, said, “At Prosperity REIT, we take our role as ‘corporate citizen’ seriously and firmly believe in integrating sustainability into our company culture. With our partnership with DBS, we hope to continue creating long-term value for our stakeholders and the community through our Vision 2030.”

As part of its long-term sustainability efforts, DBSseeks to address ESG challenges by providing businesses with credit to facilitateresponsible trade and investment flows. The bank is committed to supporting its customers who are willing to invest in building the capacity to manage ESG risks by encouraging them to benchmark themselves against international best practices while contributing to the development of best practices overall. Under its approach to sustainable financing, the bank also endeavours to help its customers in key industries such as real estate transition to a low-carbon economy by leveraging on green solutions to make a meaningful impact.