CapitaLand secures S$400m in green loans

Singapore-listed CapitaLand has secured S$400m in green loans from DBS and HSBC, as one of its logistics assets in Singapore sets a new sustainability benchmark.

DBS has provided a S$150m, four-year green loan to CapitaLand, while HSBC has arranged a S$250m, three-year multi-currency green loan, according to an announcement.

CapitaLand will use the proceeds to finance and refinance the development, investment and acquisition of certified green buildings.

The green properties must achieve at least a Green Mark GoldPLUS certification by the Building and Construction Authority of Singapore (BCA) or a LEED Gold rating by the United States Green Building Council.

“With the latest S$400m in green loans, CapitaLand and our real estate investment trusts have raised in excess of S$1.32bn through sustainable finance,” said CapitaLand CFO Andrew Lim.

“The funds will further underpin our sustainability efforts, creating better environmental, social and governance (ESG) outcomes for the communities we operate in.”

LogisTech (image: CapitaLand)

In addition to the green loans, CapitaLand has secured the BCA’s Green Mark Platinum ‘Super Low Energy (SLE)’ certification for its LogisTech logistics building in Singapore.

LogisTech is the first logistics asset in Singapore to receive this certification, which requires achieving at least 40% energy saving based on prevailing building code.

The company also announced that its corporate offices in Singapore would be entirely powered by renewable energy by end 2020, avoiding more than 700 tonnes of carbon emissions each year.

“Our green loans, attaining the first BCA’s SLE certification for logistic buildings and using 100% renewable energy to power CapitaLand’s corporate offices are some of the ways in which we are extending the frontiers in sustainable finance, innovation and future-proofing our properties,” said Lynette Leong, chief sustainability officer at CapitaLand.

“These actions also dovetail with our aim to contribute to Singapore’s goal to half 2030 peak greenhouse gas emissions by 2050 and achieving net zero emissions, as soon as viable in the second half of the century.”

CapitaLand holds 16 properties across Singapore, China, Belgium and India, as well as four  business parks in India, that are fully or partially powered by renewable energy.

CapitaLand is headquartered in Singapore and is one of Asia’s largest diversified real estate groups, with a presence across more than 200 cities in over 30 countries.

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