FRASERS Property has secured Singapore’s first green loan, of A$750 million.
The package comprises A$500 million five-year green loan tranche under the LMA/APLMA Green Loan Principles2 and a A$250 million five-year tranche. The proceeds will be used to refinance existing loans in relation to two green properties – Alexandra Point and 51 Cuppage Road.
Frasers Property CFO Loo Choo Leon said the green loan will incentivise sustainable practices.
“Frasers Property has been a key participant in the green loan market in Asia Pacific and continues to break new ground in this space. This green loan is yet another step in our green financing journey, which commenced with Southeast Asia’s first syndicated green loan obtained by Frasers Property’s indirect wholly-owned subsidiary in September 2018.
“Green financing is an integral part of our capital management strategy as it not only aligns our capital structure with our business’ focus on sustainability, it helps diversify our funding sources as well,” Loo said.
This is Frasers’ fifth green loan. Prior to this, Frasers Logistics & Industrial Trust had undertaken a A$170 million green loan in June 2019 and Frasers Property Australia had secured a A$600 million green loan (the first corporate syndicated green loan in Australia) in March 2019. Frasers Property had previously undertaken a S$785 million green club loan in March 2019 and a S$1.2 billion syndicated green loan in September 2018.
Alexandra Point is a 24-storey office building with a BCA Green Mark Platinum rating and 51 Cuppage Road is a 10-storey office building with a BCA Green Mark Gold rating. Both buildings are fitted with efficient lighting, water and air-conditioning systems. Alexandra Point has been recognised as one of the first green buildings in Singapore.