Starhill Global REIT Obtains S$600 Million Sustainability-Linked Loan for Refinancing

Starhill Global Reit Secures S$600 Million Loan from Club of Banks

S$300 Million Unsecured Facility Agreement

Starhill Global Real Estate Investment Trust’s (Reit) manager announced on March 21 that the Reit has secured a S$600 million loan from a club of banks. The five-year unsecured facility agreement consists of sustainability-linked term facilities of S$300 million and sustainability-linked revolving credit facilities of S$300 million.

Refinancing and Working Capital

The term facilities will be used to refinance the Reit’s S$100 million unsecured medium-term notes maturing in June, as well as the Reit’s unsecured term loans in September ahead of their maturities in 2026 and 2027. This is part of the Reit’s "proactive capital management strategy".

The revolving credit facilities will be available for working capital requirements and general corporate funding purposes of the Reit. A committed portion of S$200 million will replace the S$200 million committed existing revolving credit facilities expiring on February 16, 2026.

Refinancing Timeline

The use of these term facilities and refinancing is expected to take place from June to September.

Gearing Impact

The manager added that with the refinancing, the transaction is not expected to have a material impact on the gearing of the Reit.

Stock Performance

Units of Starhill Global Reit rose S$0.005, or 1%, to close at S$0.505 on Friday.

Conclusion

Starhill Global Reit’s S$600 million loan from a club of banks will provide the necessary funds for refinancing and working capital requirements. The Reit’s proactive capital management strategy aims to ensure the long-term sustainability and growth of the company.

Frequently Asked Questions

Q: What is the total loan amount secured by Starhill Global Reit?
A: S$600 million

Q: What is the breakdown of the loan amount?
A: S$300 million for sustainability-linked term facilities and S$300 million for sustainability-linked revolving credit facilities

Q: What is the purpose of the term facilities?
A: To refinance S$100 million unsecured medium-term notes maturing in June and S$100 million unsecured term loans in September ahead of their maturities in 2026 and 2027

Q: What is the purpose of the revolving credit facilities?
A: For working capital requirements and general corporate funding purposes of the Reit

Q: Will the refinancing have an impact on the gearing of the Reit?
A: No, the transaction is not expected to have a material impact on the gearing of the Reit.