City Developments said Wednesday it has received a S$250 million loan based on the U.N. Sustainable Development Goals (SDG) from DBS, with the facility offering a discounted interest rate when the property developer hits targets for sustainable innovations.
The discounts come into play when City Developments becomes the first in Singapore to adopt and apply sustainable innovations for its projects, the property developer said in a statement. The loan, a three-year revolving credit facility, is believed to be the first of its kind, City Developments said.
“Our SDG Innovation Loan will enable us to test bed fresh innovations that will exponentially enhance the way we build as well as raise the quality and performance of our buildings,” Sherman Kwek, CEO of City Developments, said in the statement.
“Green financing offers an alternative financing avenue and plays a pivotal role in channeling capital towards building greener and more climate-friendly infrastructure,” he said. “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.”
The target projects for the loan need to advance the SDGs and must be agreed with DBS and pass an independent assessment of how the innovations compare with market norms, the statement said.
“It complements global sustainability trends and answers the Singapore government’s call for climate action, smart cities, green innovation as well as sustainable development and financing,” the statement said, pointing to Prime Minister Lee Hsien Loong’s 2019 National Day Rally speech highlighting climate change as one of the gravest challenges facing humankind.
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