Singapore developer secures US$180 million green loan
Soilbuild completes 3-year green loan to redevelop Solaris @ Tai Seng property, marking its first use of green finance
Soilbuild Group Holdings Ltd (Soilbuild), a Singapore property development group, in conjunction with HSBC Singapore and OCBC Bank, is pleased to announce the completion of a three-year Green Development Club Loan amounting to S$248 million (US$179.66 million) for the redevelopment of Soilbuild’s upcoming Solaris @ Tai Seng.
The loan – which is compliant with the Green Loan Principles (GLP) – will be used to build Soilbuild’s third Green Mark Platinum build-to-lease business space with a proposed gross floor area of 1.1 million sq ft located within the Paya Lebar iPark precinct.
The transaction marks Soilbuild’s first use of green finance. On completion, the project is expected to meet the Building and Construction Authority’s Green Mark Platinum certification standards, which is the highest certification for green buildings in Singapore.
HSBC Singapore is the sole green structuring arranger for Soilbuild’s Green Finance Framework while HSBC Singapore and OCBC Bank acted as joint mandated lead arrangers for the green loan.
While this is the group’s first green loan, Soilbuild has long adopted sustainability as its operational building agenda since its first Green Mark Platinum project, Solaris @ one-north, which was completed in 2010.
Lim Han Qin, director of Soilbuild Group Holdings, says, “The upcoming Solaris @ Tai Seng is our 3rd Green Mark Platinum building, reflecting our deep commitment towards embracing sustainability.”
Gary Tan, head of ASEAN Commercial Real Estate, HSBC Singapore, says, “Being sustainable has historically been considered in the industry as a ‘nice to have’ but this deal shows that green finance is becoming an imperative for many Singapore companies. With MNCs, consumers, governments and investors turning their attention to sustainability, green loans are shifting the way in which businesses are viewed by their stakeholders.”
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