GuocoLand's $974M Green Facility for Guoco Tower

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by KnowESG
KnowESG_Guocoland's largest green facility
Image courtesy of Guocoland

GuocoLand, a prominent real estate developer, has successfully obtained a substantial $974 million green club facility from DBS Bank, United Overseas Bank (UOB), Oversea-Chinese Banking Corporation (OCBC), and Sumitomo Mitsui Banking Corporation.

This green facility will be utilised for the refinancing of the commercial component of Guoco Tower, solidifying GuocoLand's commitment to sustainable development. The loan, raised under the newly established Green Finance Framework, grants GuocoLand and its subsidiaries access to various fundraising options tied to "eligible green projects."

This $974 million green facility is GuocoLand's largest to date. GuocoLand aims to enhance the green building performance of Guoco Tower through initiatives such as improving air-conditioning and mechanical ventilation systems, as well as upgrading the building management system to monitor energy consumption effectively.

Guoco Tower, located in Tanjong Pagar, is an integrated mixed-use development encompassing Premium Grade A office space, retail space, exclusive apartments at Wallich Residence, a luxury hotel in Sofitel Singapore City Centre, and a spacious Urban Park, spanning a total of 890,000 sq ft.

Under the Green Finance Framework, GuocoLand commits to transparent reporting of relevant and material information regarding its green finance transactions (GFTs), including the environmental impact resulting from the eligible green projects financed through GFTs.

The framework benefits from the guidance of DBS, UOB, and OCBC as green loan advisors, with an independent external review conducted by Moody's Investors Service.

GuocoLand's framework aligns with various industry standards, including the Green Loan Principles 2023, established by the Loan Market Association, Asia Pacific Loan Market Association, and the Loan Syndications and Trading Association.

It also adheres to the Green Bond Principles 2021 by the International Capital Market Association (ICMA) and the Asean Green Bond Standards 2018 by the Asean Capital Markets Forum. The eligible categories within the framework are expected to contribute to multiple United Nations Sustainable Development Goals.

Before the development of this framework, GuocoLand had already secured green financing for Lentor Modern and Midtown Modern, amounting to $700 million and $730 million, respectively, including the commercial components. With the recent $974 million green facility, GuocoLand's total green financing surpasses $2.4 billion.

Andrew Chew, the Group Chief Financial Officer of GuocoLand, expresses his vision for the newly established Green Finance Framework, emphasising its support for their ongoing decarbonisation journey and contribution to the Singapore Green Plan 2030.

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Source: The Edge Singapore

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