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Tiong Seng secures S$125m in green facilities from OCBC, DBS
MAINBOARD-LISTED Tiong Seng Holdings on Monday said it has secured S$125 million worth of green loan and environmental performance-linked facilities from OCBC Bank and DBS Bank respectively.
Of that amount, S$70 million - which is a green loan - will be exclusively used on green projects, the group said in a regulatory filing.
The green loan will be used to finance construction projects with "clear environmental benefits", such as certified green buildings and projects which improve resource efficiency and generate renewable energy.
Tiong Seng added that it has set up a green loan framework guided by the green loan principles from the Loan Market Association to guide the allocation and management of proceeds from the green loan.
Meanwhile, S$55 million in environmental performance-linked facilities was signed with DBS Bank to refinance some of its existing loans as well as for general corporate purposes.
With the facilities, Tiong Seng will be eligible for interest rate and performance bond commission discounts, if agreed performance targets are met or exceeded. These targets will be based on a review and validation led by an external independent party at the end of each one-year period, the group said.
"Apart from diversifying our sources of funding, these facilities will allow us to focus on our environmental and green objectives to make a positive difference in our society," Tiong Seng Holdings chief executive Pek Lian Guan said.
Tiong Seng Contractors had in May walked off with one of the top prizes at the Building Construction Authority awards ceremony. It was the top winner of the Build Environment Leadership Award, and received the pinnacle Platinum Star for its "sustained leadership, excellence and innovation in Singapore's built environment industry".
Tiong Seng shares last traded on Nov 6 at S$0.205, up 0.5 Singapore cent or 2.5 per cent.