OCBC Bank has issued its first green loan that leverages the Building Energy Efficiency Assessment (BEEA).
The BEEA is the latest tool launched by the Building and Construction Authority of Singapore (BCA) to simplify the transition process to sustainability easier for building owners, developers and small- and medium-sized enterprises (SMEs).
The tool helps predict the energy performance of buildings, and makes the process much simpler and more convenient. Through the tool, properties can now be assessed within minutes, unlike the existing process where green building certifications and obtaining green loans could take several weeks.
With the tool, projects that are deemed to be able to achieve a level of energy efficiency comparable to the certification standard of a BCA Green Mark 2021 GoldPLUS building, will be eligible to obtain a green loan from OCBC Bank.
The tool also enables property developers and others in the value chain to gain access to green loans more easily. This will support them in the shift towards green developments and construction.
On Oct 26, the bank announced that it has extended a $148 million green loan facility leveraging the tool to Fairview Development.
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Fairview Development is a unit of one of Singapore’s leading private developers, Tong Eng Group.
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The $148 million green loan was issued under Tong Eng Group’s green loan framework, which was developed in 2020 in accordance with Green Loan Principles issued by the Loan Market Associations.
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The framework has been expanded to include projects that are assessed by BEEA to have energy performance comparable to that of a BCA Green Mark 2021 GoldPLUS certified building.
The proceeds of the loan will be used to finance the development of its upcoming residential project Belgravia Ace.
Belgravia Ace will be outfitted with several green features including the optimisation of window-to-wall ratio and the use of low emission glazing that reduces UV and infra-red rays from the sun.
The development will also use air conditioning systems and home appliances with the highest energy efficiency rating.
In addition, electric vehicle charging points will be installed within the development.
On the loan, Linus Goh, head of global commercial banking at OCBC Bank says, “We are pleased to partner BCA in leveraging their newly-launched Business Energy Efficiency Assessment tool to make it simpler and more cost-effective for developers and SMEs to obtain green financing and to accelerate the shift towards green buildings and construction.”
“We are delighted once again to partner our long-time customer Tong Eng Group on another industry-first green loan leveraging this new tool for their Belgravia Ace project,” Goh adds.
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“We are encouraged that OCBC shall utilise BCA’s Building Energy Efficiency Assessment tool. This is another energy evaluation tool under BCA’s Super Low Energy Building Smart Hub platform. This collaboration with OCBC will assist developers to design more energy efficient buildings and is a step towards a low carbon Singapore. We look forward to seeing super low energy buildings being the mainstream, in line with our Singapore Green Building Masterplan ambitions,” says Ang Kian Seng, group director of environmental sustainability group at BCA.
“We recognise that living in an environmentally sustainable space is good for health and well-being. We endeavour to reduce the environmental impact of buildings by improving energy and water efficiency, air quality as well as through the use of renewable construction materials. Through these sustainable practices, we conserve natural resources and protect global ecosystems,” says Teo Tong Lim, group managing director of Tong Eng Group.
“It may be a small step but it is every developers’ corporate social responsibility to contribute in making our built environment more sustainable,” continues Teo.
As at 1.13pm, shares in OCBC are trading 1 cent lower or 0.08% down at $11.98.
