Singapore-based City Developments Limited (CDL) has secured its first green loans amounting to S$500 million, marking the first time that green loans in Singapore will be used for new property developments.
A green loan of S$400 million, with a three-year term, is provided by DBS Bank Ltd. (DBS), which is the Advisor for this green loan.
Another green loan of S$100 million, with a two-year term, is provided by The Hongkong and Shanghai Banking Corporation Limited (HSBC), which is the Structuring Advisor for this green loan. This is the first multi-currency green loan secured by a Singapore company. It allows CDL to finance new green developments in Singapore and overseas.
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The green loans will be used to finance eligible green development projects as defined in the CDL Green Finance Framework , which was developed to demonstrate how CDL and its group entities intend to fund projects that will deliver environmental benefits to support the Group’s business strategy and vision. The framework also stipulates how the financing proceeds are to be applied to eligible projects.
CDL’s green loans follow its inaugural green bond issuance in 2017, the first by a listed Singapore real estate company. The green bond raised S$100 million which was allocated towards various initiatives to enhance energy and water efficiency at Republic Plaza, CDL’s flagship Grade A office building in the heart of Singapore’s Central Business District.
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Mr Sherman Kwek, CDL Group Chief Executive Officer, said, “Green financing plays a pivotal role in channelling capital to build greener and more climate-friendly infrastructure. CDL’s inaugural green bond in 2017 and our new green loans have enabled us to tap on investors and banks that are supportive of our sustainability best practices. With the global shift to a low carbon economy, CDL will continue to explore sustainable financing to develop more green buildings that not only bring economic savings but also benefit occupants and the environment.”
Mr Chew Chong Lim, DBS Bank Institutional Banking Group Managing Director and Global Head of Real Estate, said, “CDL has demonstrated the foresight of marrying sustainable design, construction and property management with commercial savvy. CDL’s leadership in this area raises the bar for green financing in Singapore and beyond.”
Mr Tony Cripps, HSBC Singapore Chief Executive Officer, said, “Supporting its sustainability ambitions is the most recent chapter in HSBC’s multi-decade relationship with CDL and today’s announcement shows that CDL is not just thinking about the future, but actively executing in a sustainable way.”