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SINGAPORE (EDGEPROP) - Keppel Land has secured a sustainability-linked loan of $150 million from DBS bank, which incorporates interest rate reductions linked to Environmental, Social and Governance targets. (See: Keppel Land enters into serviced co-offices partnership with SBF)
The proceeds of the loan will be used for purposes which include refinancing of maturing debt, capital expenditure for new development projects, and potential land and property acquisitions, Keppel Land says.
This sustainability-linked loan follows Keppel Land’s first green loan facility of RMB850 million ($176 million), secured in 2019, for the development of Seasons City (Phase 1) in the Sino-Singapore Tianjin Eco-City, China.
“In line with Keppel’s Vision 2030, Keppel Land places sustainability at the core of our strategy. This goes beyond the development and management of low-carbon, resource-efficient buildings, but also extends to the strengthening of our green funding sources,” says Tan Boon Ping, CFO of Keppel Land.
“With conversations around a low-carbon economy fast gaining traction, we have observed a keen interest within the real estate sector for more sustainable financing instruments,” notes Lim Wee Seng, head of energy, chemicals and infrastructure, DBS Bank.