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Keppel Land secures first green loan for Tianjin Eco-City project
KEPPEL Land, a unit of mainboard-listed Keppel Corp, has secured its first green loan facility via its subsidiary of Keppel LandChina, for the Phase 1 development of Seasons City in the Sino-Singapore Tianjin Eco-City.
The green loan, disbursed by HSBC Group China, amounts to 850 million yuan (S$170 million) and will be on a five-year term. This is also the first green loan granted by the HSBC Group China for the development of a property project in mainland China, Keppel announced in a bourse filing on Thursday.
Seasons City will feature three office towers and retail premises with a total gross floor area of about 161,800 square metres. Phase 1 of Seasons City, comprising a five-storey retail complex and a 10-storey office tower, is targeted for completion in 2020.
Green loans refer to loan instruments that exclusively finance or refinance eligible green projects. The loan to Keppel Land China will be aligned with the Green Loan Principles issued by the Loan Market Association, the Asia-Pacific Loan Market Association and the Loan Syndications & Trading Association.
In line with green standards, Seasons City is set to adopt energy-efficient lighting designs, chillers and ventilation systems. The development will also tap solar energy. The total energy and water savings to be achieved by Seasons City (Phase 1) are estimated to be over nine million yuan annually.
"Keppel Land China is pleased to secure our first green loan for the development of a commercial project in the Sino-Singapore Tianjin Eco-City. This reflects our focus on building environmentally-friendly and resource-efficient properties," said Ben Lee, president of Keppel Land China, in the filing.
Shares of Keppel Corp closed on Thursday at S$6.57, up six cents.