FRASERS Property : TQ5 0% has secured a S$1.08 billion five-year green term loan club facility to refinance its maturing term loan facility, due in September, for Frasers Tower. 

The green loan received strong support from a consortium of seven banks, announced the group on Tuesday (Aug 22). 

Participating banks, or mandated lead arrangers, are UOB, DBS, OCBC, ICBC, CIMB, RHB and ING. 

UOB was appointed the facility agent. DBS will serve as the security agent for the transaction. 

Frasers Tower is a 38-storey premium Grade A commercial building located on Cecil Street. It is one of six office properties managed by Frasers Property Singapore, a strategic business unit of the group.

The agreed terms stated that the green loan enjoys a reduction in margin if Frasers Tower maintains at least a Green Mark Gold Plus certification status issued by the Building and Construction Authority. The property has already been accorded the higher rating of Green Mark Platinum. (*see amendment note)

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Loo Choo Leong, group chief financial officer of Frasers Property, highlighted the group’s continual engagement with sustainable financing since raising Singapore’s first syndicated green loan in 2018.

“To date, the group has secured more than S$10 billion of green or sustainability-linked loans and bonds, attesting to our commitment to our decarbonisation journey,” he added. 

As at 10.52 am on Tuesday after the news, shares of Frasers Property were trading at S$0.80, down S$0.01 or 1.2 per cent.

* Amendment note: The article had earlier said Green Mark Platinum to be the highest rating attainable. Frasers Property has since clarified that Green Mark Platinum was the highest rating when Frasers Tower was rated two years ago. BCA has introduced a new framework with effect from November 2021, and the highest attainable rating is now Green Mark Platinum Positive Energy.