Four banks provided the five year green club deal: Bank of China Singapore branch, DBS Bank, which was also security agent, Oversea-Chinese Banking Corp (also facility agent) and Sumitomo Mitsui Banking Corp Singapore branch, the company said on Wednesday.
The proceeds will be used to refinance existing loans relating to the development of Northpoint City South Wing.
Northpoint City includes a 920-unit private condominium, and two shopping malls, according to the company. It has a number of green features, such as lush greenery and double glazing, an efficient air conditioning and lighting system and the use of recycled water for toilet flushing.
The loan was issued under the company’s green loan framework, established under the Green Loan Principles published by both the Europe and Asia-Pacific's Loan Market Associations (LMA and APLMA) a year ago. The guidelines clarify the characteristics of a green loan based on four components: use of proceeds, project selection and evaluation, management of proceeds and reporting.
On Wednesday the LMA, APLMA and US trade body the Loan Syndications and Trading Association launched the Sustainability-Linked Loan Principles. Unlike green loan principals which require the proceeds to be used for green projects, the SLLPs allow borrowers to use the money for whatever they want, as long as they make wider improvements to their corporate social responsibility.
Frasers sealed its first green loan of S$1.2bn ($876m) last September. The five year deal, co-ordinated by BNP Paribas and ING, attracted four other participants: DBS, Maybank, OCBC and United Overseas Bank.
That transaction was used to refinance loans relating to the development of Frasers Tower, which comprises an office tower and a retail podium. The property received the Singapore Building and Construction Authority’s green project certificate.
Updated on Monday March 25 to reflect that Northpoint City rather than Northpoint City South Wing includes 920-unit private condominium and two shopping malls.