SINGAPORE (Sept 4): City Developments Limited (CDL) has secured an SDG Innovation Loan worth $250 million from DBS, to accelerate innovative solutions that promote UN sustainable development goals (SDGs).
According to a joint statement by CDL and DBS on Wednesday, the loan encompasses a three-year revolving credit facility from DBS, and will be used for CDL’s general working capital and corporate funding.
CEO of CDL Sherman Kwek says, “Our SDG Innovation Loan will enable us to test bed fresh innovations that will exponentially enhance the way we build as well as raise the quality and performance of our buildings.”
The property developer will also be eligible for a discount on the interest rate of the loan when it achieves sustainability-related performance targets mutually agreed with DBS on innovations that contribute positively to the SDGs.
To qualify, CDL is required to be the first in Singapore to adopt and apply such innovations to its projects. An authoritative expert or expert panel will be appointed to independently assess and endorse the innovative nature of CDL’s proposal against market norms. In addition, CDL must remain listed on at least one leading global sustainability index.
The loan will support three SDGs out of the 17 adopted by UN member states in 2015 – namely SDG 9: Industry Innovation and Infrastructure; SDG 11: Sustainable Cities and Communities and SDG 13: Climate Action.
CDL has been integrating ESG practices into its business for over two decades. In April, the company secured its first green loans amounting to S$500 million, marking the first time that green loans in Singapore would be used for new property developments.
Managing director and global head of real estate, institutional banking Chew Chong Lim says, “This latest SDG Innovation Loan is an extension of our commitment to not only provide financial solutions that meet the changing demands of businesses but to advance SDGs to generate long-term value. We believe that partnerships like these can strengthen collective efforts to address increasingly complex sustainability challenges in new and different ways.”
