CITY Developments Limited (CDL) has taken out a £200 million (S$338.2 million) three-year sustainability-linked revolving credit facility from OCBC to be utilised for refinancing, generate corporate funding and working capital purposes. 

This brings the group’s total sustainable financing secured to date to around S$6 billion, said the property developer on Monday (Nov 4).

CDL is the first corporate to obtain the OCBC 1.5°C loan: a financing solution launched by the lender in March this year, offering corporates interest rate incentives pegged to annual decarbonisation targets.

Reference pathways for the loan facility were developed by autonomous global organisations. They are geared towards achieving net-zero greenhouse gas emissions (GHG) by 2050 to limit global warming to 1.5 degrees Celsius above pre-industrial levels.

CDL said the pre-agreed annual decarbonisation performance objectives under the loan terms are in line with the group’s Science Based Targets initiative-validated goals. The company aims to achieve these decarbonisation performance goals by 2030, against a 2016 baseline. 

These include a targeted reduction in GHG emissions intensity by 63 per cent per square metre leased area under Scope 1 and 2 emissions.

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Other targets include a 41 per cent targeted reduction in per square metre gross floor area of Scope 3 GHG emissions from purchased goods and services.

Scope 1 emissions are directly generated by the company, while Scope 2 emissions come from energy that a company consumes. Scope 3 emissions are indirectly caused by the company in its value chain, such as transportation and investments.

Yiong Yim Ming, CDL’s group chief financial officer, said: “With rising investor expectations and a global shift to a low-carbon economy, we will continue to explore more sustainable financing initiatives aimed at developing green buildings that enhance our emissions pathways to reach our decarbonisation targets.”

Shares of CDL were trading flat at S$6.18 as at 11.18am on Monday, after the news.