DBS’ $72m loan to PLife REIT to finance elder care in Japan

The loan follows the REIT’s Sustainable Finance Framework.

DBS issued a $72m (JPY8.8b) 10-year social loan to Parkway Life REIT (PLife REIT), which will use the proceeds to finance elder care facilities in Japan.

This marks the first healthcare-sector social loan for DBS and the first social loan for PLife REIT, according to a press release.

The facility follows the establishment of PLife REIT’s Sustainable Finance Framework, with DBS serving as the sole sustainable finance advisor and receiving verification from an independent third party.

The framework adheres to international Social Loan Principles and governs the allocation of capital for green and social projects across Singapore, Japan, and Europe.

Eligible initiatives under the framework include healthcare infrastructure enhancements, energy efficiency upgrades, and renewable energy projects, the press release said.

Performance indicators for the loan include the number of nursing home accommodations provided and the number of individuals benefiting from PLife REIT programmes.

Yong Yean Chau, Chief Executive Officer of Parkway Trust Management Limited, said the framework allows the REIT to channel capital toward assets that deliver environmental and social outcomes.

Eugene Hong, Head of Healthcare and Pharmaceuticals at DBS, stated that the transaction directs capital toward assets and services that strengthen social resilience.

Shilpa Gulrajani, Head of Sustainable Finance at DBS, noted that the loan expands access to healthcare infrastructure to support Japan’s long-term demographic needs.

Japanese residents aged 65 or older reached 36.25 million, accounting for 30% of the national population in 2024, compared with a 10% global average, according to the World Bank.

(SG$1 = JPY121.97)