OCBC extends S$148m green loan using BCA's new assessment tool

OCBC extended its first green loan leveraging the new Building Energy Efficiency Assessment (BEEA) tool launched by the Building and Construction Authority of Singapore (BCA), the bank announced in a press statement on Tuesday (Oct 26).

Proceeds from the S$148 million facility to Fairview Development, a unit of Singapore private developer Tong Eng Group, will be used to finance the development of its upcoming residential project Belgravia Ace.

The collaboration between OCBC and BCA aims to help building owners, developers and small and medium-sized enterprises (SME) in the property value chain make the transition to sustainability simpler with "easier access" to green loans, the statement highlighted.

The new online BEEA tool, which predicts the energy performance of buildings, can be used to assess projects that are able to achieve a level of energy efficiency comparable to the certification standard of a BCA Green Mark 2021 GoldPLUS building. These projects will then be eligible to obtain a green loan, said OCBC.

The statement highlighted that the BEEA tool is able to provide assessments "within minutes" as compared to the existing process for green loans which require green building certifications to be obtained. The current process "could take several weeks" using consultant services, with the timeline depending on the scale and complexity of the project.

As part of BEEA's online assessment, property developers are required to provide information on air-conditioning, mechanical ventilation systems and lighting, among others. The tool also provides options for additional measures that can be implemented to lower the energy consumption for the property along with the related costs.

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OCBC's head of global commercial banking Linus Goh noted that the new BEEA tool will 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.

BCA's group director of environmental sustainability group Ang Kian Seng said: "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."

With regard to the Belgravia Ace facility, several green features such as optimisation of window-to-wall ratio, use of low emission glazing that reduces the sun's harmful UV and infra-red rays to facilitate better ventilation and minimise heat gain to the building, and provision of water efficient wares and fittings will be incorporated.

The facility, made with eco-friendly products, will also see features such as air-conditioning systems and home appliances with the highest energy efficiency rating, air purifying filtration devices with the latest Plasma technology and electric vehicle charging points, added the statement.

An environmentally sustainable space is good for health and well-being, pointed out group managing director of Tong Eng Group, Teo Tong Lim.

"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," added Teo.

OCBC closed two Singapore cents lower at S$11.97 on Oct 26.

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