Keppel Land obtains first green loan for China commercial development project

Hong Kong money-changer with yuan symbol signHong Kong money-changer with yuan symbol sign. Photo taken pre-Covid

Keppel Land China secured its first green loan facility for 850 million yuan, or around S$170 million, form HSBC Group China to develop Seasons City phase one in the Sino-Singapore Tianjin Eco-City on the mainland, Keppel said in a filing to SGX Thursday.

The green loan, or a loan available exclusively for green projects, will be a five-year term loan aligned with green loan principles requiring a project to demonstrate clear, assessable environmental benefits, the filing said.

“This reflects our focus on building environmentally-friendly and resource-efficient properties. Keppel Land is committed to ensure that all new overseas commercial projects are minimally certified to the Building and Construction Authority of Singapore’s (BCA) Green Mark GoldPlus standard, or its equivalent,” Ben Lee, president of Keppel Land China, said in the statement.

Seasons City will have three office towers and retail space with a total gross floor area of around 161,800 square meters, with phase one comprising a five-storey retail complex and a 10-storey office tower, the filing said. Phase one is expected to be completed in 2020, Keppel said.

Phase one has received the BCA Green Mark Platinum Award (Provisional), the highest level under the BCA Green Mark program, Keppel said.

The project incorporates energy-efficient lighting designs, chillers and ventilation systems as well as using non-potable water to reduce water consumption and a solar hot water system, Keppel said.

The loan is also HSBC Group China’s first green loan to support a property development on the mainland, the filing said.

Eco-City is a bilateral project between the Singapore and China governments for sustainable urbanizaton, the filing said.

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