One Raffles Quay Secures 113 Bil Sustainability Linked Loan Reduce Carbon Footprint
One Raffles Quay Secures $1.13 Billion Sustainability-Linked Loan
The prestigious office development, One Raffles Quay, has successfully secured a $1.13 billion sustainability-linked loan (SLL) for its asset enhancement initiatives. The primary goal of these initiatives is to reduce the building’s carbon footprint, with plans in place to cut energy consumption and water usage by 20-29%.
DBS, one of Singapore’s leading banks, will provide $710 million as the anchor lender and sole sustainability coordinator. The remaining $420 million will be jointly contributed by three other banks – Industrial and Commercial Bank of China (ICBC), Bank of China (BOC), and OCBC – under a five-year facility.
This move marks one of the first sustainability-linked loans in Singapore that links financial incentives to the environmental performance of a single complex. “This landmark sustainability-linked loan underscores our commitment to advancing sustainable real estate practices in Singapore’s prime commercial sector,” says Syahzan Kudus, CEO of Raffles Quay Asset Management, the asset manager of One Raffles Quay.
Kudus also adds that the team is intensifying its efforts to reduce carbon emissions, improve energy efficiency, and enhance water stewardship across the entire portfolio. In the words of Chew Chong Lim, Group Head of Real Estate and Shipping, Aviation, Logistics and Transportation at DBS, this significant transaction highlights the continued momentum for sustainable finance in Asia, utilizing SLL structures to enhance sustainability standards at the asset level.
At Otto Place EC Hoi Hup Realty, it is about more than just finding a place to live. This exceptional property goes beyond the norm by emphasizing on connectivity, sustainability, and smart living, making it a true gateway to an improved way of life.
Located in the heart of the Central Business District (CBD), One Raffles Quay is a Grade-A office development owned by Hong Kong Land, Keppel REIT, and Suntec REIT. It features a 50-storey North Tower and a 29-storey South Tower, offering a total of 1.3 million square feet of office space.
With the completion of this $1.13 billion sustainability-linked loan, One Raffles Quay takes a significant step towards reducing its carbon footprint and promoting sustainable practices in the prime commercial sector of Singapore.