$692 million green loan secured for project in Tengah's ‘forest' estate
SINGAPORE – A green loan of $692 million has been secured for a project in the upcoming Tengah 'forest' town, which has been billed as Singapore's first eco-friendly and car-lite green estate.
The loan was secured by a consortium led by Hong Leong Holdings, together with joint venture partners GuocoLand and CSC Land Group.
The loan is anchored by DBS Bank, providing $484 million, with the remainder from OCBC Bank.
The loan will fund the project's green infrastructure and ecological integration efforts, DBS said on June 3.
The Tengah area is divided into five districts and will offer some 42,000 new homes when fully completed. It is bounded by a 100m-wide and 5km-long forest corridor and spans 700ha.
Homes in Tengah are also built with smart technologies, such as a centralised cooling system – an energy-efficient alternative to conventional air-conditioning.
The Hong Leong Holdings project that the green loan supports will be located in Tengah Garden Avenue and is slated for launch in 2026, as Tengah's first private mixed-use residential development. It will have around 860 homes, together with integrated retail amenities.
Green loans are used to finance eligible green projects with clear environmental benefits like energy efficiency and pollution prevention.
Borrowers need to clearly state the environmental sustainability objectives of their projects, among other criteria, in order to get the green loans.
Green loans can provide preferential terms compared with normal loans, and can also provide other benefits to borrowers, such as helping them to meet regulatory requirements or consumer demands.
Hong Leong Holdings general manager of projects Loke Kee Yeu said: 'With the global shift to a low-carbon economy, we are reinforcing our role as a reputable developer by embedding responsible green practices across our building processes for a more sustainable future.'
Mr Chew Chong Lim, DBS institutional banking group head of real estate and shipping, aviation, logistics and transportation, said: 'Climate change is accelerating, and changing how we live, work and play.
'In this evolving landscape, integrating nature into urban development is of growing importance to build more sustainable and resilient townships where people can thrive and enjoy nature.'
Sue-Ann Tan is a business correspondent at The Straits Times covering capital markets and sustainable finance.
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