OCBC Wing Hang Bank, a wholly-owned subsidiary of OCBC Bank in China, has provided a green loan of RMB500 million ($103.4 million) to Shanghai Kai Tong Wen An Development, a subsidiary of property developer K. Wah International Holdings.
The first tranche was disbursed on May 24.
This is the first green loan signed between OCBC Wing Hang Bank and K. Wah International.
Funds from the loan will be used for K. Wah’s new office tower, EDGE, located in Shanghai’s Suzhou Creek.
The office tower, which was completed in early 2020, was built with sustainable development in mind. The building includes energy saving measures and other environmentally-friendly features such as panoramic sky gardens to improve air quality and alleviate the urban heat island effect.
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The building has been awarded LEED (core and shell) gold certification by the US Green Building Council.
“The concept of sustainable development is integral to our corporate culture, and is reflected in all aspects of our operations, including our lending practices. This green financing transaction with K. Wah International is a milestone in our continuing journey to do good and we will continue to work with our customers on sustainable finance and extend our capabilities to do much more in this space,” says Benjamin Quek, deputy president and head of corporate banking at OCBC Wing Hang China.
“This loan is K. Wah International’s first green loan and will support our ambitions in developing green buildings. We will actively bring in more environmentally-friendly features in future projects to mitigate climate change impacts on our communities. We are glad to cooperate with OCBC Wing Hang China to support the growth of green finance, and to contribute positively to the environment and the community,” adds Paddy Lui, executive director of K. Wah International.
OCBC Bank, in a statement on May 24, says it aims to build a sustainable finance portfolio of $25 billion by 2025.
As at 2.51pm, shares in OCBC are trading 14 cents higher or 1.2% up at $12.07.
