DBS has announced its first social loan for the healthcare sector, providing a S$72m (JPY 8.8b) facility to Parkway Life REIT (PLife REIT). The 10-year loan will fund elder care facilities in Japan, addressing the urgent demand for quality aged care services as the country’s population aged 65 or older reached a record 36.25 million in 2024, accounting for 30% of the population.
The loan is part of PLife REIT’s Sustainable Finance Framework, developed with DBS as the sole sustainable finance adviser. This framework aligns with international principles, including the Social Loan Principles, and supports projects in Singapore, Japan, and Europe. These projects focus on healthcare and eldercare infrastructure, energy efficiency, renewable energy, and climate-resilient improvements.
Yong Yean Chau, CEO of Parkway Trust Management Limited, highlighted the significance of this refinancing exercise, stating, “This refinancing exercise marks an important milestone in PLife REIT’s sustainable financing journey, as we undertake our inaugural 10-year social loan under the Sustainable Financing Framework.”
Eugene Hong, Head of Healthcare and Pharmaceuticals at DBS, emphasised the importance of sustainable financing in the healthcare sector, noting, “As DBS’ first social loan in the healthcare sector, this transaction demonstrates how a well-structured sustainable financing framework can move quickly from intent to impact.”
Shilpa Gulrajani, Head of Sustainable Finance at DBS, added, “Sustainable finance goes beyond addressing environmental challenges – it is increasingly also about delivering meaningful social impact.”
This initiative marks a significant step in addressing Japan’s demographic challenges and enhancing healthcare infrastructure through sustainable financing.
