City Developments Limited (CDL) and MCL Land have secured green loans amounting to $847 million to finance two upcoming residential projects in Singapore the companies will be developing under a 50:50 joint venture.
In May, CDL and MCL Land were awarded two Government Land Sales (GLS) plots at Northumberland Road and Tengah Garden Walk Executive Condominium (EC), having placed the top bids at both sites.
The 4.5-year $429 million green loan financing package for Northumberland Road is provided by DBS Bank, while UOB has provided the 4.5-year $418 million green loan for Tengah Garden Walk EC. The facilities mark both developers’ first Singapore Overnight Rate Average (SORA)-based green loans.
The loans will fund the development of these two projects which are targeted to secure Singapore’s Building and Construction Authority (BCA) Green Mark GoldPLUS certifications and are consistent with CDL’s Sustainable Finance Framework as well as the Hongkong Land Green Financing Framework.
By attaining the BCA Green Mark GoldPLUS certifications, the projects will be classified as Eligible Green Projects aligned with Green Loan principles issued by the Loan Market Association and Asia Pacific Loan Market Association.
“As a sustainability pioneer that issued the first green bond by a Singapore company back in 2017 followed by the inking of the first green loan for new property developments in 2019, we have demonstrated that green financing offers an alternative financing avenue that plays a pivotal role in channelling capital towards building smarter, greener and more climate-friendly infrastructure,” says Sherman Kwek, CDL’s group CEO.
“Including the latest loans for our two newly acquired projects, CDL has secured over $3 billion of sustainable financing to date, in the form of various green loans, a green bond and a sustainability-linked loan,” he adds.
Tan Wee Hsien, CEO of MCL Land, says, “These green loans are important steps forward as part of MCL Land's journey towards forging a more sustainable future for both our developments and customers in a post-pandemic world. We are keeping pace with our parent company, Hongkong Land, whose commitment to sustainability remains a key component of its efforts to empower the communities of today to aspire for a better tomorrow.”
To date, Hongkong Land has secured sustainability-linked loans of US$1.9 billion ($2.6 billion) in the region and recently issued its US$500 million inaugural green bond and a HK$375 million ($64.8 million) green bond.
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The Northumberland Road site, measuring 94,000 square feet, will be developed into a mixed-use project comprising around 407 residential apartments of up to 23 storeys and commercial retail space including an infant care and childcare centre on the ground floor.
Once completed, the development will enjoy direct access to Farrer Park MRT station on the North East Line, with Dhoby Ghaut MRT station, a triple-line MRT interchange, only two stops away. Green features range from energy efficient fittings such as 5-ticks air conditioning systems and LED lighting, as well as a Pneumatic Waste Conveyance System
Meanwhile, CDL and MCL Land will jointly develop an EC project comprising 12 blocks of up to 14 storeys with around 628 residential units in total at the Tengah Garden Walk EC site.
The site is the first EC site in Tengah New Town released under the GLS programme. Tengah New Town is set to become the first smart and sustainable town, with green features and smart technologies nestled within a forest park setting.
Tengah Garden Walk EC will be the first GLS private residential project that will be certified the BCA Green Mark GoldPLUS (Super Low Energy) rating.
The green loan of $418 million for the project will facilitate the adoption of more sustainable features within the development. Green features will include solar photovoltaic systems to replace 30% of energy consumption generated from the common areas and a passive facade design that encourages healthier ventilation and a reduction in overall heat gain.
As at 10.45am, shares in CDL are trading down 11 cents or 1.58% lower at $6.86.
Photo: CDL and MCL Land
