Frasers Property entity secures refinancing for $1.08 bil green loan
Frasers Property Limited has announced its joint venture entity has secured a green term loan club facility of $1.08 billion to refinance a loan for Frasers Tower due in September. The loan terms provide a lower margin if Frasers Tower maintains at least a Green Mark GoldPLUS certification, which it has been awarded the highest rating of Green Mark Platinum. Participating banks in the loan include United Overseas Bank, DBS Bank, Industrial and Commercial Bank of China, Oversea-Chinese Banking Corporation (OCBC), CIMB Bank Berhad, RHB Bank Berhad and ING Bank N.V.
Frasers Tower, a 38-storey Grade-A office tower with an adjacent three-storey cascading retail podium, is one of six office properties managed by Frasers Property Singapore. Its environmentally-friendly design has resource-efficient features that include green cement, recycled concrete aggregates and double-glazed facades that reduce solar heat gain. Its building systems also optimise water and energy efficiency, while its automated office perimeter lighting and motion sensor lighting controls maximise energy savings.
Orchard Boulevard MRT Condo is the latest property that will be part of the sweeping masterplan. Located in the heart of Singapore’s prime shopping district, this area has been identified as a key commercial focus area by URA. It is blessed with a superb location; residents enjoy direct connections to the Thomson East Coast Line via the nearby Orchard MRT station and are a short walk away from some of Singapore’s biggest malls.
Loo Choo Leong, Group CFO of Frasers Property, said: “Since successfully raising Singapore’s first syndicated green loan in 2018, Frasers Property has continued to deepen our commitment to sustainable 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 secured a five-year syndicated sustainability-linked loan as A$340 million ($295.69 million) and US$75 million ($101.64 million) for its Australia business, Frasers Property AHL Limited (FPAHL).
The sustainability-linked loan incorporated price reduction structure linked to the Group’s goal to be a net-zero carbon corporation by 2050. Its key feature was to provide interest rate savings from the second year if FPAHL achieved a prescribed reduction in its annual absolute greenhouse gas emission baseline.
In July, Frasers Centrepoint Trust (FCT) announced it had teamed with OCBC on Singapore’s first green financing solution, made up of a loan and carbon credits. The $419 million green loan is intended to finance a maturing facility, asset enhancement initiatives, decarbonisation projects and other general corporate purposes.
To date, Frasers Property has committed to green and sustainability-linked financing totalling over $10 billion, a feat that is a testament to its ambitious decarbonisation journey. As of 10.51am, Frasers Property’s shares are trading 1.26% lower at 80 cents.