Bookmark & Share
A discount on the loan’s interest rate will be given to CDL if it achieves sustainability-related performance targets that have been agreed upon with DBS.
City Developments Limited (CDL) has secured a Sustainable Development Goal (SDG) Innovation Loan worth $250 million, in the form of a three-year revolving credit facility given by DBS Bank.
In an SGX filing, CDL revealed plans to use the loan for general working capital and corporate funding.
A discount on the loan’s interest rate will be given to CDL if it achieves sustainability-related performance targets that have been agreed upon with DBS.
To qualify, the company must be the first in the city-state to adopt such innovations for its projects. An expert panel or authoritative expert will be appointed to independently assess and endorse the innovative nature of the company’s proposal as compared to market norms.
CDL must also remain listed on at least one leading global sustainability index.
“Green financing offers an alternative financing avenue and plays a pivotal role in channelling capital towards building greener and more climate-friendly infrastructure,” said CDL group chief executive officer Sherman Kwek.
“CDL’s green bond and green loans have enabled us to tap like-minded banks and partners that are supportive of our sustainability best practices while establishing a closer alignment of our ESG commitments with socially responsible investors.”
For the past two years, DBS has given around $6.9 billion in sustainable financing to entities wanting to adopt more resource-efficient operations and towards green industries. This amount covers ESG-linked loans, green loans and renewable projects financing.
DBS was the only bookrunner for CDL’s green bond in 2017. It also extended a $400 million green loan to CDL in April 2019.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
Related Articles:
CDL Hospitality Trusts sells two Aussie hotels for $79.6m
CDL not extending offer for M&C beyond 26 Jan
CDL Hospitality Trusts see strong financial growth in Q4 2017