GuocoLand Secures S$974 Million Green Finance Facility, Establishes Green Finance Framework

(Image Credit: GuocoLand)

Singapore-listed real estate investment and development company GuocoLand has secured a S$974 million (US$719 million), green club facility (green facility) from DBS Bank (DBS), United Overseas Bank (UOB), Oversea-Chinese Banking Corporation (OCBC), and Sumitomo Mitsui Banking Corporation for the refinancing of the commercial component of Guoco Tower.

Guoco Tower is an integrated mixed-use development at Tanjong Pagar on the fringe of Singapore’s CBD, comprising 890,000 sq ft of Premium Grade A office space, 100,000 sq ft of retail space, 181 exclusive apartments at Wallich Residence, a luxury hotel in Sofitel Singapore City Centre and a 150,000 sq ft Urban Park.

The multifaceted development holds two of the highest green building certifications in the industry – the Green Mark Platinum award rating by the Building and Construction Authority (BCA) and the Leadership in Energy and Environment Design (LEED) Platinum certification by the U.S. Green Building Council.

This latest green facility is GuocoLand’s largest to date and is raised under its newly established Green Finance Framework (Framework). Proceeds of the loan will go towards refinancing Guoco Tower, GuocoLand’s flagship asset.

The Framework gives GuocoLand and its subsidiaries access to various fundraising options including bonds, loans and other forms of debt financing with structures tailored to contribute to sustainable development through the application of net proceeds to ‘Eligible Green Projects’ in accordance with the Framework criteria and guidelines. DBS, UOB, and OCBC are the green loan advisors of the Framework.

“Our newly established Green Finance Framework is envisioned to support our ongoing decarbonisation journey as well as our efforts to contribute to the Singapore Green Plan 2030,” said Andrew Chew, group chief financial officer, GuocoLand.

Prior to the development of the Framework, GuocoLand had secured green financing, comprising S$700 million and S$730 million facilities for the development of its Lentor Modern and Midtown Modern (including the commercial components), developments respectively.

With the latest green facility, GuocoLand has secured a total of more than S$2.4 billion of green financing to date.