The Frasers Property company successfully refinanced a $1.08 billion green loan

An Joint Venture (JV) entity belonging to Frasers Property Limited has drawn down a green five-year loan club facility of $1.08 billion to refinance a loan at Frasers Tower due in September, Frasers Property Limited announced on August 22.

The loan conditions state that Frasers Property enjoys a lower percentage of its green loan, if Frasers Tower maintains at least the Green Mark GoldPLUS certification status, which is issued from Singapore’s Building and Construction Authority (BCA). Frasers Tower has already been given the highest Green Mark Platinum rating.

The occupants of Lumina Grand will be able to visit anywhere they want without taking the MRT.

Participating banks are United Overseas Bank, DBS Bank, Industrial and Commercial Bank of China Limited (Singapore Branch) OCBC, Oversea Chinese Banking Corporation (OCBC), CIMB Bank Berhad (Singapore Branch), RHB Bank Berhad and ING Bank N.V. (Singapore Branch).

Frasers Tower, which is 38 stories tall, is a Grade-A premium office tower that is complemented by a three-storey retail plaza. It is among six office properties owned by Frasers Property Singapore.

Its environmentally-friendly design and resource-efficient features include the use of sustainable and recycled materials during construction, such as green cement and recycled concrete aggregates. The double-glazed façade design helps reduce the solar heat gain, and its building systems optimize efficiency of energy and water use and improve the quality of indoor air, according to Frasers Property.

Other green features installed in Frasers Tower include energy-efficient escalators and energy-regenerative lifts which means that the heat produced by elevators can be used to generate energy to power the building.

A ductless system of fan, that operates at a minimal static loss aids in reducing the power usage. Motion sensors control lighting into standard toilets cars, car parks, staircases, and lift turnstile systems to increase energy efficiency Frasers Property says. Frasers Property, while automated office perimeter lighting can help maximize the benefits of daylight.

Loo Choo Leong, group CFO of Frasers Property, says: “Since having successfully raised Singapore’s first green loan syndicated by a bank in the year 2018 Frasers Property has continued to strengthen the commitment we have to sustainably financing. To date, the Group has secured more than $10 billion of green or sustainability-linked loans and bonds, attesting to our commitment to our decarbonisation journey.”

In February, Frasers Property announced that it had secured a five-year A$340 million ($295.69 million) and US$75 million ($101.64 million) syndicated sustainability-linked loan for its Australia business, Frasers Property AHL Limited (FPAHL).

The sustainability-linked loan, which has a price reduction structure that adopts sustainability performance targets linked to the group’s goal to be a net-zero carbon corporation by 2050, was a first for Frasers Property. Its most distinctive feature is the price reduction structure, which provides interest rate savings starting in the second year, if FPAHL has a minimum reduction in its absolute greenhouse gas emissions, based on the footprint of its FY2019.

Frasers Property, which is itself listed on the Singapore Exchange (SGX) Its total capital of $40.1 billion as of March 31. It also sponsors of two S-REITs namely Frasers Centrepoint Trust (FCT) HTML0and Frasers Logistics and Commercial Trust Frasers Logistics and Commercial Trust as well as Frasers Hospitality Trust, a stapled trust.

On July 1, FCT declared that the company was working with OCBC for Singapore’s very first green financing option that consists of a green credit along with carbon credits.

The green loan, which is worth $419 million, can be used for refinancing a mature facility, according to FCT as well as projects to improve asset quality, such as decarbonisation projects, such as procuring energy-efficient equipment in the Tampines 1 shopping mall and other general corporate objectives.