Keppel DC REIT Management Pte. Ltd., in its capacity as the Manager of Keppel DC REIT is pleased to announce that Keppel DC REIT has established its inaugural Green Financing Framework^[1] (the Framework) to bolster its sustainability efforts and progress towards achieving its environmental, social and governance (ESG) targets and commitments.

The Framework will guide green financing transactions undertaken by Keppel DC REIT, exclusively funding green data centre projects that meet the eligibility criteria in five categories: green buildings, renewable energy, energy efficiency, climate change adaptation and sustainable water management. The criteria have been selected based on an assessment of industry best practices and align with Keppel DC REIT’s material and important ESG factors.

Eligible types of investments include acquisitions of new or existing data centres, capital and operating expenditure, as well as asset enhancement initiatives. The Framework also outlines the management of funds for green data centre projects, and establishes methodologies to monitor and report the environmental outcomes of the green financing transactions.

Mr Loh Hwee Long, CEO of Keppel DC REIT Management Pte. Ltd., said, “Establishing our first Green Financing Framework marks a significant milestone for Keppel DC REIT. It reflects our dedication to integrating sustainability into every aspect of our business. This Framework not only aligns our capital management strategy with our ESG objectives but also enhances the long-term value we create. We remain committed to building a quality portfolio of future-proof data centre assets to deliver sustainable returns.”

The Framework was developed in alignment with the four core components of the International Capital Market Association’s (ICMA) Green Bond Principles (GBP) 2021 (including the June 2022 Appendix 1). It also adheres to the Loan Market Association, the Asia Pacific Loan Market Association, and the Loan Syndications and Trading Association’s Green Loan Principles (GLP) 2023. These four components cover the use of proceeds, project evaluation and selection process, the management of proceeds and the reporting process. DBS Bank was the sole advisor of the Framework.

In addition, the Framework references internationally recognised sustainable finance taxonomies in relevant jurisdictions, including the EU Taxonomy and the ASEAN Taxonomy.

DNV Business Assurance Singapore Pte Ltd. assessed the Framework against relevant sustainable finance principles and taxonomies in relevant jurisdictions. They issued a Second Party Opinion^[2], concluding that Keppel DC REIT’s Framework is consistent with the requirements of these principles and standards.

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About Keppel DC REIT (www.keppeldcreit.com)

Keppel DC REIT was listed on the Singapore Exchange on 12 December 2014 as the first pure-play data centre REIT in Asia.

Keppel DC REIT’s investment strategy is to principally invest, directly or indirectly, in a diversified portfolio of income-producing real estate assets which are used primarily for data centre purposes, as well as real estate and assets necessary to support the digital economy.

Keppel DC REIT’s investments comprise a mix of colocation, fully-fitted and shell and core assets, as well as debt securities, thereby reinforcing the diversity and resiliency of its portfolio.

Keppel DC REIT is managed by Keppel DC REIT Management Pte. Ltd. (the Manager) and is sponsored by Keppel, a global asset manager and operator with strong expertise in sustainability-related solutions spanning the areas of infrastructure, real estate and connectivity.

^[1] Keppel DC REIT’s Green Financing Framework is available at: https://www.keppeldcreit.com/en/sustainability/.

^[2] The Second Party Opinion is available at: https://www.keppeldcreit.com/en/sustainability/.