CapitaLand clinches $400mil in green loans

CapitaLand has secured two green loans totalling $400 million to catalyse greening of the group’s global portfolio by 2030.

DBS Bank provided the property giant a $150 million four-year green loan, while The Hongkong and Shanghai Banking Corporation Limited – Singapore Branch (HSBC) provided a $250 million three-year multi-currency green loan.

 Proceeds from the green loans will be used for the financing or refinancing of the investment, acquisition and development of certified green buildings.

 CapitaLand noted that the green buildings should achieve or is expected to achieve “minimally a Green Mark GoldPLUS certification by the Building & Construction Authority of Singapore (BCA) or a Leadership in Energy and Environmental Design (LEED) Gold rating by the United States Green Building Council”.

 It revealed that its four-storey building LogisTech has been awarded BCA’s Green Mark Platinum ‘Super Low Energy (SLE)’ certification.

 Held under Ascendas REIT, the development met BCA’s criteria of being the best-in-class energy performing Green Mark Building that achieves at least 40% energy saving based on prevailing building code.

 It underwent a major upgrade and the installation of solar panels at the building’s rooftop is estimated to generate more than 2,000 megawatt hour (MWh) of energy annually. The energy generated onsite will be used to power the building. Overall, the SLE building is projected to save more than 3,900 MWh per year.

 Moreover, CapitaLand’s corporate offices in three locations in Singapore is set to be 100% powered by renewable energy by end-2020. This means the company will avoid more than 700 tonnes of carbon emissions annually, which is equivalent to carbon-emission from the electric consumption of 400 four-room HDB flats in one year.

 “This furthers CapitaLand’s objective to achieve at least 20% energy consumption from renewable energy by 2025,” said the property giant in a statement.

 CapitaLand added that it will also acquire Renewable Energy Certificates (REC) from the clean energy generated from over 21,000 solar panels installed atop its six industrial properties in Singapore that are held under Ascendas REIT. It will use the RECs to reduce carbon emission at operations in its corporate offices within Galaxis, eCapitaHub and Capital Tower.

 With the RECs, electricity usage of the common facilities at three of Ascendas REIT’s buildings at one-north will also be 100% powered by renewable energy, beginning with Neuros and Immunos in 2020 to Nexus@one-north and Nucleos by end-2022.

 “CapitaLand’s continued efforts in sustainable finance shows our strong dedication to responsible growth. With the latest S$400 million in green loans, CapitaLand and our real estate investment trusts have raised in excess of S$1.32 billion 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,” said Andrew Lim, Group Chief Financial Officer, CapitaLand Group.

 “It is heartening to have like-minded banking partners in DBS and HSBC, who continue to share our long-term commitment towards sustainability, regardless of the challenges stemming from the COVID19 situation. CapitaLand will remain focused on doing right, doing good and doing well.”