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CDL bags S$500m in green loans for new property developments
CITY Developments Limited (CDL) has bagged S$500 million in two green loans, marking the first time such financing will be used in Singapore for new property developments, the mainboard-listed developer announced on Friday.
A three-year green loan of S$400 million will be provided by DBS Bank, which is also the advisor for the loan.
Another two-year green loan of S$100 million is being extended by The Hongkong and Shanghai Banking Corporation Limited (HSBC), which is structuring advisor for the loan.
CDL noted that these loans will allow the group to finance new green developments in Singapore and abroad.
"The green loans will be used to finance eligible green development projects as defined in the CDL green finance framework, which was developed to demonstrate how CDL and its group entities intend to fund projects that will deliver environmental benefits to support the group's business strategy and vision," the company said.
CDL's green loans come after its inaugural green bond issuance in 2017. The green bond raised S$100 million, which was allocated towards initiatives to enhance energy and water efficiency at CDL's flagship office building in Republic Plaza.
Said CDL CEO Sherman Kwek: "Green financing plays a pivotal role in channelling capital to build greener and more climate-friendly infrastructure. CDL’s inaugural green bond in 2017, and our new green loans have enabled us to tap on investors and banks that are supportive of our sustainability best practices.
"With the global shift to a low carbon economy, CDL will continue to explore sustainable financing to develop more green buildings that not only bring economic savings but also benefit occupants and the environment."
In a sustainability report released by CDL this year, the group reported savings of more than S$24 million due to energy-efficient initiatives and retrofitting implemented at eight of its office buildings from 2012 to 2018.
As at 3.22pm on Friday, shares in CDL were trading at S$9.33 apiece, up 0.3 per cent, or three Singapore cents.