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UOB issues S$120m green loan to The Farrer Park Company to refinance integrated complex
UOB has issued a S$120 million green loan to healthcare firm The Farrer Park Company to refinance the latter's integrated healthcare and hospitality complex, Connexion.
It is the first such loan for a healthcare facility in Singapore, the companies said in a joint press statement on Thursday. They added that the loan will support The Farrer Park Company's continued efforts to ensure it is environmentally responsible in its operations.
Connexion, which houses the Farrer Park Medical Centre, Farrer Park Hospital and One Farrer Hotel, has been certified a Green Mark Platinum building by the Building and Construction Authority since 2011, the companies said. To be re-certified, the building has to meet a list of performance metrics, including achieving at least 30 per cent in energy savings as compared with developments of a similar size.
One of Connexion's design features is the use of low emissivity glass to reflect heat and to keep cool air within its premises for more efficient energy consumption, the companies said. Connexion's management also actively monitors energy and water consumption and pursues opportunities to lower its carbon footprint, they added.
The Farrer Park Company's chief executive officer Peng Chung Mien said being the first healthcare building to receive the green loan underscores the company's commitment to reduce its carbon footprint.
Leong Yung Chee, head of corporate banking Singapore, UOB, said through the loan issue, the bank hopes to lead the way for more healthcare companies to consider green financing in their sustainability efforts.
"This will not only support our collective efforts in transitioning towards a lower carbon economy, but also encourages companies to consider their environmental, social and governance risks, particularly against the backdrop of the Covid-19 pandemic," he added.
The loan is issued under the UOB Real Estate Sustainable Finance Framework, a lending framework specifically developed for companies that own or manage real estate assets.
Mr Leong said the framework, which was launched in October 2019, makes it easier for companies to apply for sustainability-linked or green loans, as they do not need to come up with their own sustainable finance framework.
UOB shares were trading at S$19.23 as at 11.39am on Thursday, down S$0.07 or 0.4 per cent.