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.
The green loans will be used to finance eligible green development projects.
CDL’s green bond in 2017 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.
The rising tide of green financing
Increasingly, companies are leveraging green financing to fund their sustainability-linked projects. According to research by BloombergNEF, green bonds issuance amounted to US$182.2 billion in 2018 and sustainability-linked loans reached US$36.4 billion that same year.
Mr Sherman Kwek, Group Chief Executive Officer of CDL, 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.”
As at December 2018, CDL accumulated a total of 100 Green Mark developments and office interiors awarded by Singapore’s Building and Construction Authority (BCA), the highest tally among private sector real estate companies in Singapore. CDL is also the first and only private sector developer to receive the BCA Built Environment Leadership Platinum Star Award.