SINGAPORE (June 20): Keppel Land, through a wholly-owned subsidiary of Keppel Land China, has secured its first green loan facility of RMB 850 million ($170 million) from the HSBC Group China for the first phase of development of Seasons City in the Sino-Singapore Tianjin Eco-City.
This is the first green loan granted by the HSBC Group China to support the development of a property project in Mainland China, says Keppel Land, the property arm of Keppel Corp, in a Thursday filing after the market closed.
Seasons City is part of Keppel Land’s growing commercial portfolio in China to meet the rising demand for prime office and retail space. It will feature three office towers and retail premises with a total gross floor area of about 161,800 sqm. Phase 1 of Seasons City, which comprises a five-storey retail complex and a 10-storey office tower, is targeted for completion in 2020.
The loan, which will be on a five-year term, will be based on green loan principles laid down by the Loan Market Association, the Asia Pacific Loan Market Association and the Loan Syndications & Trading Association, where the project must demonstrate clear environmental benefits which can be assessed.
Ben Lee, president of Keppel Land China, says, “Keppel Land China is pleased to secure our first green loan for the development of a commercial project in the Sino-Singapore Tianjin EcoCity. This reflects our focus on building environmentally-friendly and resource-efficient properties. Keppel Land is committed to ensure that all new overseas commercial projects are minimally certified to the Building and Construction Authority of Singapore’s (BCA) Green Mark GoldPlus standard, or its equivalent.”
Shares in Keppel closed at $6.57 today.
