Frasers Property secures Singapore’s first green loan with pricing structure linked to BCA GreenMark
SINGAPORE: Frasers Property Limited has, through its wholly-owned subsidiary Frasers Property Treasury Pte. Ltd., secured A$750 million term loan comprising a A$500 million five-year green loan tranche under the LMA/APLMA Green Loan Principles and a A$250 million five-year tranche.
The proceeds from the green loan tranche will be used to refinance existing loans in relation to two green properties Alexandra Point and 51 Cuppage Road. To incentivise sustainable practices, the green loan has a reducing pricing structure with interest cost savings from the second year onwards if the green properties maintain the requisite green standards.
Loo Choo Leong, Group Chief Financial Officer of Frasers Property, commented, “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.”
This is the Group’s 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 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. It has won numerous accolades, including the prestigious SGBC-BCA Sustainability Awards 2017 for Sustainable Performance & Design (Commercial).