The loan of about $338.2 million marks the first net-zero aligned loan for corporates in Singapore (Photo: CDL).
SINGAPORE (EDGEPROP) - City Developments Limited (CDL) has obtained the OCBC 1.5°C three-year loan of GBP200 million ($338.2 million), which marks the first net-zero aligned loan for corporates in Singapore, the real estate firm announced in a press release on Dec 4. The loan will be used for refinancing, general corporate funding and working capital purposes.
OCBC launched the 1.5°C loan in March to incentivise corporates to set and work towards clear carbon emissions reduction targets. Companies that obtain the loan will get a reduced interest rate if they meet or exceed the pre-agreed annual decarbonisation performance targets.
The target for CDL aligns with the firm’s goals to reduce its greenhouse gas emissions intensity by 63% per sqm leased area for Scope 1 and 2 emissions, 41% per sqm gross floor area for Scope 3 emissions, and 58.8% against its 2016 baseline by 2030. These targets also cover hotels managed by CDL’s wholly-owned subsidiary, Millennium and Copthorne Hotels.
Yiong Yim Ming, group chief financial officer of CDL, says that the firm has embarked on alternative financing avenues to channel capital towards building greener infrastructure since 2017.
“We will continue to explore more sustainable financing initiatives to develop green buildings that enhance our emissions pathways to reach our decarbonisation targets. By aligning finance with sustainability, the investment community and corporates can collectively mobilise capital towards delivering positive impact,” she adds.
Elaine Lam, OCBC’s head of global corporate banking, says the real estate firm looks forward to achieving the targets. She says: “After all, the only viable way for us to reach net zero in our financed emissions is for our clients to reach net-zero emissions.”