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Frasers Property bags S$350m green loan for Fernvale Lane exec condo project
FRASERS Property has, through its subsidiary Fernvale Lane, obtained a S$350 million green loan from DBS Bank, Maybank and OCBC Bank.
This will finance its Fernvale Lane executive condominium (EC) development. It is Singapore's first green loan for an EC development, and the group's 10th green financing initiative, Frasers Property said on Tuesday.
The green loan framework has been structured according to green loan principles issued in 2018 by the Loan Market Association and Asia Pacific Loan Market Association.
Fernvale Lane is 80 per cent held by a wholly-owned subsidiary of Frasers Property and 20 per cent held by CSC Land Group (Singapore).
CSC Land Group (Singapore) is the development arm and a wholly-owned subsidiary of China Construction (South Pacific) Development Co. The latter is the regional subsidiary of China State Construction Engineering Corporation, an investment and construction conglomerate.
Fernvale Lane will develop an EC with about 500 units at the Fernvale Lane site, which the group won in a government land sale exercise in March 2020.
On completion, the development is targeted to obtain BCA Green Mark Gold Plus, Frasers Property said.
The site is close to the Seletar Aerospace Hub and the upcoming Punggol Digital District.
The Frasers Property group raised its first green financing in September 2018 to refinance Frasers Tower.
Loo Choo Leong, group chief financial officer of Frasers Property, said: "Including this latest green loan, as a group, we have raised around S$4 billion in green financing to date. Tapping the green loan market is not only an integral part of our capital management strategy, but a natural extension of our business focus on sustainability, and we intend to keep adding to Frasers Property's track record of raising green financing."
For the latest loan, DBS Bank was also the facility agent, Maybank was the security agent, while OCBC Bank was the green loan coordinator.
Shares in Frasers Property closed at S$1.37 on Monday, up S$0.03 or 2.2 per cent.