CDL, MCL Land secure green loans totalling S$847m for two residential developments

CITY Developments Limited (CDL) C09 and MCL Land have secured green loans amounting to S$847 million to finance the development of two newly-acquired government land sale sites at Northumberland Road and Tengah Garden Walk, CDL said in a statement on Tuesday.

A S$429 million 4.5-year green loan, provided by the loan's advisor DBS, will be used to finance the development at Northumberland Road, while a S$418 million 4.5-year green loan, provided by this loan's advisor UOB, will be used to finance the Tengah Garden Walk executive condominium.

The loans are the first Singapore Overnight Rate Average-based green loans for both developers, who will be developing the projects under a 50-50 joint venture.

CDL expects the two projects to secure the Building and Construction Authority's Green Mark Gold Plus certifications, which will classify the developments as eligible green projects that meet Green Loan principles issued by the Loan Market Association and Asia Pacific Loan Market Association.

CDL's group chief executive officer Sherman Kwek said CDL will work closely with MCL Land "to explore innovative green building technologies and solutions for (their) joint projects".

He noted that CDL, which issued the first green bond by a Singapore company in 2017, has secured over S$3 billion of sustainable financing to date. This includes green loans, a green bond and a sustainability-linked loan.

Tan Wee Hsien, MCL Land's chief executive officer, added that the developer "aspires to be a green developer advocate".

MCL Land is a fully-owned subsidiary of Hong Kong Land, which Mr Tan said also has a "commitment to sustainability" and has secured sustainability-linked loans of US$1.9 billion to date, in markets including Hong Kong and Singapore.

Shares of CDL were trading at S$6.88 as at 11.14am on Tuesday, down S$0.09 or 1.3 per cent.

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