Frasers Property and its subsidiaries have announced a five-year green loan of $800 million, with support from a consortium of seven banks. The loan will go toward refinancing the maturing term loan and maintaining significant sustainability features for Frasers Tower, a Grade-A commercial building in Singapore.
Green loans finance projects that substantially contribute to an environmental and sustainability objective, and Fraser’s plans to ensure the building maintains at least a Green Mark Gold Plus certification. According to the loan terms, the company will receive a reduction in margin for these efforts.
“Since successfully raising Singapore’s first syndicated green loan in 2018, Frasers Property has continued to deepen our commitment to sustainable financing,” said Loo Choo Leong, group chief financial officer of Frasers Property. To date, the Group has secured more than $10 billion ($7.37 billion U.S.) of green or sustainability-linked loans and bonds, attesting to our commitment to our decarbonization journey.”
Frasers’ Net-Zero Goal and Tower Sustainability Plan
The new Frasers Tower will be added to the list of the companies’ green-certified buildings or those seeking green certification, which represents 45% of its total building profile. The company maintains sustainability goals including achieving net-zero emissions by 2050, establishing a climate resiliency and adaptation plan by 2024, green-certifying 80% of their asset-managed properties, and financing the majority of sustainable asset portfolios with green financing by 2024.
Frasers Tower’s environmentally friendly design includes the use of sustainable and recycled materials during construction, like green cement and recycled concrete. Its double-glazed façade windows reduce solar heat gain, and building systems optimize water and energy use while improving indoor air quality. Further, the greenery used at the tower helps lower the surface temperature of the building, and rainwater is used to irrigate these plants.
The building already maintains a Green Mark Platinum rating for its sustainability features, and the secured green loan will finance the building’s new updates to meet Green Mark Gold Plus certification standards in accordance with the loan agreement.