DBS provides GIC with green loan for Sydney property

The Chifley Tower Sydney, a development in the Central Business District (CBD) of Sydney, Australia. Credit: GICThe Chifley Tower Sydney, a development in the Central Business District (CBD) of Sydney, Australia. Credit: GIC

DBS has extended a A$295 million green loan to Singapore sovereign wealth fund GIC to refinance the Chifley Tower Sydney, the Singapore bank said in a press release Wednesday.

The facility is one of the largest green loans by a Singapore lender in the Australian market, DBS said, adding it was the bank’s first Australian dollar-denominated green loan.

The Chifley Tower Sydney is a development in the central business district (CBD) of Sydney, Australia; the property has obtained the Green Star certification from the Green Building Council of Australia and a 5.5-star energy rating from NABERS, the release said.

“As a long-term investor, sustainability is integral to GIC’s mandate and continues to be a key priority for GIC. This green loan is consistent with GIC’s belief that assets with strong sustainability practices offer prospects of better risk-adjusted returns over the long term, and that this relationship will strengthen over time as market externalities are priced in,” the press release said.