One Raffles Quay has secured a $1.13 billion sustainability-linked loan (SLL) for asset enhancement initiatives aimed at minimising the building’s carbon footprint. The initiatives will aim to cut energy consumption and water usage at the development by between 20% and 29%.
DBS will provide $710 million as the anchor lender and sole sustainability coordinator while three other banks — Industrial and Commercial Bank of China (ICBC), Bank of China (BOC) and OCBC — will jointly contribute the remaining $420 million under the five-year facility.
DBS says the loan is one of the first sustainability-linked loans in Singapore to link 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.
He adds that the team is reinforcing its focus on carbon reduction, enhanced energy efficiency and responsible water stewardship across the entire portfolio.
“This significant transaction highlights the continued momentum for sustainable finance in Asia, leveraging SLL structures to enhance sustainability standards at the asset level,” says Chew Chong Lim, group head of real estate and shipping, aviation, logistics and transportation at DBS.
One Raffles Quay is a Grade-A office development along Raffles Quay in the heart of the CBD. Jointly owned by Hong Kong Land, Keppel REIT and Suntec REIT, the development consists of a 50-storey North Tower and a 29-storey South Tower, offering a total of 1.3 million sq ft of office space.
