Singapore’s CapitaLand Receives Over $282 Million for Green Buildings

DBS Bank and HSBC offered loans to the tune of ~$106 million and ~$177 million respectively


Headquartered in Singapore, CapitaLand has secured a total of S$400 million (~$282.65 million) in a green loan to increase its green assets and enhance its global portfolio by 2030.

Out of the total amount, S$150 million (~$106 million) has been provided by DBS Bank Ltd (DBS). This loan is for four years, while the remaining S$250 million (~$177 million) is the three-year multi-currency green loan provided by The Hongkong and Shanghai Banking Corporation Limited, Singapore branch (HSBC).

According to the company’s statement, the proceeds from these green loans will be used towards the financing or refinancing of the development, investment, and acquisition of certified green buildings.

Green buildings reduce or eliminate negative impacts on the environment and climate. They can be tied to carbon and energy objectives such as net-zero emissions, as well as considerations for people’s health and well-being. Investing in green buildings allows market players to manage potential risks that stem from the global transition to low-carbon economies.

Recently, the International Finance Corporation (IFC), a member of the World Bank Group, released a report that sheds light on the enormous potential of green buildings in emerging markets. The report, titled “Green Buildings: A Finance and Policy Blueprint for Emerging Markets,” notes that by 2030, in emerging markets alone, green buildings will offer a $24.7 trillion investment opportunity, which will spur economic growth and accelerate sustainable development.

Andrew Lim, group chief financial officer, CapitaLand Group, said, “With the latest S$400 million (~$282.65 million) in green loans, CapitaLand and our real estate investment trusts have raised an excess of S$1.32 billion (~$933 million) through sustainable finance. The funds will further underpin our sustainability efforts, creating better environmental, social, and governance (ESG) outcomes for the communities we operate in.”

As per the company’s statement, CapitaLand will purchase Renewable Energy Certificates (REC) from the solar energy generated from over 21,000 solar panels installed atop CapitaLand’s six industrial properties in Singapore.

Lynette Leong, chief sustainability officer, CapitaLand Group said: “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.”

The green buildings must achieve or are expected to achieve either a Green Mark Gold PLUS certification from the Building & Construction Authority of Singapore (BCA) or a Leadership in Energy and Environmental Design (LEED) Gold rating from the United States Green Building Council, the company’s statement added.

Neo Choon Keong, deputy CEO (Industry Development) for Singapore’s Building and Construction Authority said: “BCA and the Singapore Green Building Council (SGBC) are working closely with like-minded partners like CapitaLand to co-create the Singapore Green Building Masterplan 2020, which will chart the next phase of our green building journey. We will also encourage more building owners to come on board so that the sector continues to play a major role in mitigating climate change and putting Singapore on the world map as a global leader in sustainable buildings while providing a highly liveable built environment for Singaporeans.”

CapitaLand now has 16 properties in Singapore, China, Belgium, India, and four business parks in India that are fully or partially powered by renewable energy.

Recently, LYS Energy Group (LYS), a Singapore-based solar independent power producer (IPP), received S$14 million (~$10 million) green loans from the United Overseas Bank (UOB), Southeast Asia’s third-largest finance group and Singapore’s third-largest bank. According to the company, the loan will be used to finance LYS’ solar energy assets in Singapore and its expansion towards clean energy.

In 2019, Mercom reported that Singapore’s Sunseap Group, secured a $43 million green loan from the United Overseas Bank Limited (UOB) to increase the reach of solar power in the country.