GuocoLand has secured a $974 million green club facility from DBS Bank D05 , United Overseas Bank U11 (UOB), Oversea-Chinese Banking Corporation (OCBC) O39 and Sumitomo Mitsui Banking Corporation for the refinancing of the commercial component of Guoco Tower.
This is GuocoLand F17 ’s largest green facility to date, says the property group on June 28.
The loan was also raised under its new Green Finance Framework, which gives GuocoLand and its subsidiaries access to various fundraising options linked to “eligible green projects”.
Initiatives to enhance green building performance at Guoco Tower, for example, include improvements to the efficiency of its air-conditioning and mechanical ventilation system and upgrades to the building management system to better monitor the tower’s energy consumption, says GuocoLand.
Guoco Tower is an integrated mixed-use development at Tanjong Pagar, comprising 890,000 sq ft of Premium Grade A office space, 100,000 sq ft of retail space, 181 exclusive apartments at Wallich Residence, a luxury hotel in Sofitel Singapore City Centre and a 150,000 sq ft Urban Park.
In line with the framework, GuocoLand has committed to transparent reporting of relevant, material information of its green finance transactions (GFTs), including the relevant environmental impact resulting from the eligible green projects financed by the GFTs.
See also: A US$12 bil climate fund is readying a rare bond issuance
DBS, UOB and OCBC O39 are the green loan advisors of the framework. Moody’s Investors Service was engaged to conduct an independent external review of the framework.
GuocoLand says the framework is aligned with the Green Loan Principles 2023 by the Loan Market Association, Asia Pacific Loan Market Association and the Loan Syndications and Trading Association, as well as the Green Bond Principles 2021 by the International Capital Market Association (ICMA) and the Asean Green Bond Standards 2018 by the Asean Capital Markets Forum.
The eligible categories in the framework are “likely to contribute to several of the United Nations’ Sustainable Development Goals”, adds GuocoLand.
See also: India aiming to finalise carbon deals with Japan, Singapore
Prior to the development of the framework, GuocoLand had secured green financing, comprising $700 million and $730 million facilities for the development of Lentor Modern and Midtown Modern respectively, inclusive of the commercial components. With the latest green facility, GuocoLand has secured a total of more than $2.4 billion of green financing to date.
Andrew Chew, group chief financial officer, GuocoLand, says: “Our newly-established Green Finance Framework is envisioned to support our ongoing decarbonisation journey as well as our efforts to contribute to the Singapore Green Plan 2030.”
As at 10.27am, shares in GuocoLand are trading flat at $1.51.
