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The green club loan also demonstrates the commitment of the group to sustainability within the built environment, noted Hoi Hup Realty chairman Wong Swee Chun.
Developer Hoi Hup Realty, via its subsidiary Ophir-Rochor Hotel, has obtained a $332.5 million green club loan to part-finance its $475 million purchase of Andaz hotel, reported The Business Times.
Aside from being the group’s first green loan, it is also the first for Southeast Asia’s hospitality industry, said OCBC Bank and Hoi Hup in a joint statement.
OCBC Bank served as the green loan adviser, while United Overseas Bank and Maybank Singapore were the other club bank in the facility.
Hoi Hup Realty’s latest BCA Green Mark certified property, Andaz Singapore is a five-star hotel that received its BCA Green Mark (Hotel) Goldplus Award in 2013 for its environment-friendly features.
Issued under the green loan framework of Hoi Hup Realty, the green loan “provided guidelines for Hoi Hup Realty’s evaluation of the eligibility of Andaz Singapore as a green project based on its sustainability objectives, and will further guide the developer in the management of net proceeds from the green loan,” read the joint statement.
The green club loan also demonstrates the commitment of the group to sustainability within the built environment, noted Hoi Hup Realty chairman Wong Swee Chun.
“This transaction also highlights the urgency in the shift towards green finance in our region, and we at OCBC are committed to working with our customers to uncover new opportunities across industries to finance sustainable initiatives which combat climate change,” added Linus Goh, head of global commercial banking at OCBC Bank.
OCBC, which plans to build a $10 billion sustainable finance portfolio by 2022, described the deal as a “momentum builder heading into the new year”.
In November, the Monetary Authority of Singapore revealed plans to develop grant schemes aimed at supporting the mainstreaming of sustainability and green linked loans. It also announced plans to launch a US$2 billion programme to expedite the growth of the city-state’s green finance ecosystem.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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