Keppel Land secured a green loan facility worth S$150 million. What is the key motive of this multinational giant for taking this loan? Let’s find out.
What do we know about Keppel Land?
Keppel corporation is one of the biggest multinational flagship companies in Singapore. It has a global footprint in over 20 countries. Keppel Land is the subsidiary of this established company which operates on property. The Group has contributed in pushing Singapore businesses to venture overseas. It also has one of the leading real estate trusts (REIT) in Asia.
What does Keppel land plan to do with the S$150 million loan?
Keppel Land secured a sustainability loan worth S$150 million from DBS Bank. This is a green loan facility hence offers interest rate reduction. They are granted this loan as it will contribute to Environmental, Social and Governance targets.
Their prime goal is to first refinancing their maturing debt and capital expenditure for new development projects. The money will also go towards potential land and property acquisition.
For the long term, Keppel Land envisions a sustainable strategy by 2030 to do their developments. All their operations will adopt low carbon footprints to resource efficient buildings.This will highly strengthen the green funding sources. So, the DBS loan serves to help Keppel achieve their targets. And make strides towards Singapore eco friendly development.
How did Keppel use their earlier green loan facility?
Previously, Keppel Land took their very first green loan facility worth S$176 million in 2019. They used it to develop Seasons City (Phase 1) in the Sino-Singapore Tianjin Eco-City, China. Looks like Keppel is making strides in introducing sustainability in the world of property developments.
The loan facilities on the other hand are also supporting these ventures which support a green ecosystem. Earlier, we saw how a green loan facility was offered to Worldwide Hotel to build their upcoming project. Looks like Singapore is boosting confidence not only to hoteliers but any property developers who are ready to adapt sustainability.
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