GuocoLand receives a $974 million green loan to refinance Guoco Tower and introduces a green finance framework

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Grand Dunman site plan

GuocoLand has obtained an $874 million green club loan from DBS Bank, United Overseas Bank (UOB) as well as Oversea Chinese Bank (OCBC)and Sumitomo Mitsui Banking Corporation for refinancing the commercial portion of Guoco Tower.

GuocoLand’s biggest green project to date as stated by GuocoLand’s property group on the 28th of June.

It was secured in the context of its newly-launched Green Finance Framework, which provides GuocoLand and its affiliates the option of fundraising in a variety of ways that are tied with “eligible eco-friendly projects”.

Grand Dunman site plan is expected to house 1,040 residential units and a maximum building height of about 64 metres.

Initiatives to improve the performance of green buildings in Guoco Tower, for example includes enhancements in the effectiveness of the air conditioning as well as the mechanical system for ventilation as well as improvements on the system for building administration in order to better control the tower’s energy use according to GuocoLand.

Guoco Tower is a mixed-use development in Tanjong Pagar, comprising 890,000 square feet of premium grade A office space 100,000 square feet in retail, and 181 luxury residences in Wallich Residence, an exclusive hotel located within the Sofitel Singapore City Centre and 150,000 square feet of Urban Park.

In accordance with the guidelines, GuocoLand has committed to open and transparent reporting of pertinent important information about Green Finance Transactions (GFTs) and the environmental impact that is resulting from green projects that are eligible to be that are financed through the GFTs.

DBS, UOB and OCBC are the green loan advisors to the framework. Moody’s Investors Service was engaged to provide an independent external audit of the structure.

GuocoLand claims that the framework is compatible in accordance with Green Loan Principles of 2023 adopted by the Loan Market Association, Asia Pacific Loan Market Association and the Loan Syndications and Trading Association and GuocoLand’s Green Bond Principles 2021 by the International Capital Market Association (ICMA) and the Asean Green Bond Standards 2018 from the Asean Capital Markets Forum.

The categories eligible under this structure are “likely to be able to contribute to a number goals of the United Nations’ Sustainable Development Goals” GuocoLand adds.

Prior to the creation of the framework GuocoLand had secured green financing that included $750 million and $730 millions of facilities to develop Lentor Modern and Midtown Modern and Midtown Modern, respectively, including the commercial component. With the most recent Green Facility, GuocoLand have secured greater than $2.4 billion in green financing so far.

Andrew Chew, group chief financial officer at GuocoLand Andrew Chew, GuocoLand’s chief financial officers, says: “Our newly-established Green Finance Framework is designed to help support our ongoing efforts to reduce carbon emissions and our efforts to support our contribution to Singapore Green Plan 2030.”