Real Estate Investment Trust Taps Singapore Bank For New Green Financing Solution

Singapore lender OCBC has extended Frasers Centrepoint Trust (FCT), Singapore’s first green financing solution that encompasses a green loan and carbon credits, to accelerate the seven-storey Tampines 1 retail mall’s move towards carbon neutrality.

Under the green financing structure, proceeds from the S$419 million green loan will be used for the refinancing of a maturing facility, asset enhancement initiatives, decarbonisation projects such as procurement of energy-efficient technology for Tampines 1, and other general corporate purposes.

The carbon credits, sourced through OCBC’s Emissions Trading Desk, will go towards investing in Verra or Gold standard certified carbon reduction nature-based projects. The amount of carbon reduced will be equivalent to the financed emissions associated with the green loan.

FCT will further purchase additional carbon credits to account for the residual and unavoidable Scopes 1 and 2 as well as energy-related Scope 3 emissions2 of the mall’s carbon footprint.

The seven-storey Tampines 1 retail mall with a total net lettable area of 268,514 square feet in the eastern region of Singapore, has been recertified with the Building and Construction Authority (BCA) Green Mark GoldPLUS status.

The mall’s existing energy-efficient features include a chiller plant system that operates under an Energy Performance Contracting framework; motion sensors for lighting in staircases and toilets; rooftop greenery to improve the energy efficiency of its chillers; and carbon dioxide sensors to monitor indoor air quality level.

In addition, as part of the Frasers Property Group’s initiative, Tampines 1 has installed charging points at designated electric and hybrid vehicle parking lots to support Singapore’s push towards EV adoption. Active steps at Tampines 1 to further reduce carbon emissions include the installation of solar panels on its roof in the fourth quarter of 2023 to supplement its energy usage with renewable energy.

Elaine Lam, Head of Global Corporate Banking, OCBC, said: “This new financing solution will pave the way for us to support green buildings while directing more capital towards carbon credit generating projects. Through working with FCT and its sponsor Frasers Property Group, we have also achieved a deeper understanding of the sustainability ambitions and needs of our real estate clients, which will allow us to support them better in the future.”