South Beach Consortium, a joint venture between City Developments (CDL) and Malaysia’s IOI Properties Group Berhad, has secured a five-year green loan of $1.22 billion, making it one of Singapore’s largest green loans to date.
The loan is provided by DBS, UOB, Maybank, SMBC and OCBC.
DBS is the lead green advisor, and UOB is the green advisor.
Proceeds from the green loan will go toward the refinancing of the South Beach mixed-use development in alignment with CDL’s sustainable finance framework.
The framework was developed and adopted when CDL’s SDG Innovation loan was launched in 2019, and stipulates how the financing proceeds are to be applied to eligible projects.
South Beach is a mixed-use development that will adopt an environmental design and green technology to create a distinctive, high-quality development that fits in with Singapore’s tropical climate and urban context
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The complex was re-certified with two Green Mark Platinum rating by the Building and Construction Authority (BCA), which is the highest tier of the Green Mark Certifications for its commercial and residential components.
“Since CDL issued the first green bond by a Singapore company in 2017, we have continued to advance on sustainable financing initiatives. By doing so, we are channelling capital to achieve better environmental outcomes and aligning with the expectations of the investment community for more sustainable developments. Including this green loan obtained by South Beach, CDL has secured over $2.5 billion of sustainable financing in the form of a green bond, green loans and a sustainability-linked loan to date,” says Yiong Yim Ming, CDL’s group chief financial officer.
“As a green developer advocate, we are heartened that our strong sustainability track record enables CDL to tap the fast-growing sustainable financing pool to benefit our joint venture projects, sharing our green vision of a low-carbon future with our like-minded partners,” she adds.
“From inception, South Beach was designed to exemplify Singapore’s ideal of a ‘City in a Garden’ and with the intention to embody top design and environmental sustainability. The Green Loan is a strong testament to South Beach’s efforts in driving the green built environment movement and further cements South Beach as one of Singapore’s most sustainable and energy-efficient mixed-use development,” says Samantha Tan, general manager of South Beach Consortium.
Shares in CDL closed 9 cents higher or 1.1% up at $8.14 on April 13.
