Frasers Property secured a A$750 million five-year term loan, including a A$500 million (S$715.33 million) five-year green loan tranche with a reduced pricing structure, the developer said in a filing to SGX Wednesday.
The green loan proceeds will be used to refinance existing loans related to two green properties, Alexandra Point and 51 Cuppage Road, Frasers Property said.
The pricing structure of the green loan is reduced, and provides interest cost savings from the second year if the properties maintain green standards, the filing said.
“Green financing is an integral part of our capital management strategy as it not only aligns our capital structure with our business’ focus on sustainability, it helps diversify our funding sources as well,” Loo Choo Leong, group CEO of Frasers Property, said in the statement.
“This green loan is yet another step in our green financing journey, which commenced with Southeast Asia’s first syndicated green loan obtained by Frasers Property’s indirect wholly-owned subsidiary in September 2018,’ he added.
Frasers Property has taken out five green loans, including the one announced Wednesday, the filing said.
Alexandra Point has a BCA Green Mark Platinum rating, while the Cuppage Road property has a BCA Green Mark Gold rating, the filing said. Both buildings have efficient lighting, water and air-conditioning systems, it said.
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