Ho Bee Land to buy London property with HSBC green loan
Singapore
PROPERTY investment and development firm Ho Bee Land has secured its first green loan, which will go towards acquiring a commercial development in London.
The £200 million (S$352.9 million) bridged facility provided by HSBC is also one of Singapore's first green loans.
Ho Bee said the loan was executed under the firm's green finance framework, which was certified by third-party green assurance provider, Sustainalytics. HSBC also served as the green restructuring adviser in the commissioning and development of the framework.
Green loans are not to be confused with sustainability-linked loans, which can be used for everyday corporate purposes that meet pre-set environmental, social and governance criteria. Proceeds from green loans can be used only to fund specific projects with positive environmental benefits.
Ho Bee will use the bridging loan to finance the acquisition of the 21-storey commercial development, Ropemaker Place in London.
The property has achieved a green building pre-certification with Leadership in Energy and Environmental Design (LEED) and has secured an excellent rating with BREEAM, a sustainability assessment scheme.
Ho Bee's chairman and chief executive Chua Thian Poh said: "We have always prided ourselves in developing and investing into quality properties and now, we are able to tap green financing to fund projects that are both environmentally friendly and sustainable."
HSBC Singapore's head of commercial banking, Alan Turner, said: "By setting up its green finance framework, Ho Bee has been able to realise its green vision and ambitions as well as provide it with the necessary infrastructure to tap green financing in the future.
"Moreover, the deal is good news for Singapore's green financing credentials as it sets the template for other corporates seeking similar green transactions."
Sustainalytics product manager Trisha Taneja said: "The HSBC loan to Ho Bee Land... is a significant step to scale the flow of capital to environmentally impactful projects."
Ho Bee Land closed at S$2.65 on Thursday, up seven Singapore cents.
