CAPITALAND has obtained two green loans amounting to S$400 million to “catalyse greening of the group’s global portfolio by 2030”, the property giant said on Wednesday.
DBS Bank is providing a S$150 million four-year green loan, while the Hongkong and Shanghai Banking Corporation – Singapore branch (HSBC) is offering a S$250 million three-year multi-currency green loan.
Proceeds from these loans will be used for financing, or refinancing of the development, investment and acquisition of certified green buildings.
The green buildings must achieve, or are expected to achieve, minimally a Green Mark Gold Plus certification by the Building & Construction Authority of Singapore (BCA), or a Leadership in Energy and Environmental Design (LEED) Gold rating by the United States Green Building Council, the company said.
CapitaLand’s corporate offices across three locations in Singapore will be fully powered by renewable energy by the end of this year. This means that the group will avoid over 700 tonnes of carbon emissions each year, equivalent to the annual carbon emissions from the electricity consumption of 400 four-room HDB flats.
This would also further the group’s objective to achieve at least 20 per cent energy consumption from renewable energy by 2025.
In addition, CapitaLand will purchase Renewable Energy Certificates (RECs) from the clean energy generated from over 21,000 solar panels installed atop CapitaLand’s six industrial properties in Singapore, held under Ascendas Real Estate Investment Trust (Ascendas Reit). The RECs will be used to reduce carbon emissions at CapitaLand’s operations in its corporate offices within Capital Tower, Galaxis and eCapitaHub.
With the RECs, the common facilities’ electricity usage at three of Ascendas Reit’s buildings at one-north in Singapore will also be 100 per cent powered by renewable energy, starting with Neuros and Immunos in 2020 and extending to Nexus@one-north and Nucleos by end 2022, CapitaLand noted.
CapitaLand has been awarded BCA’s Green Mark Platinum “Super Low Energy” (SLE) certification for its logistics building, LogisTech. The four-storey building, held under Ascendas Reit, met BCA’s criteria of being the best-in-class energy performing Green Mark Building that achieves at least 40 per cent energy saving based on its prevailing building code.
The development underwent a major upgrade and LogisTech’s installation of solar panels at its rooftop is estimated to generate over 2,000 megawatt hour (MWh) of energy per year. The energy generated onsite will be used to power the building. In total, the SLE building is expected to save over 3,900 MWh each year, CapitaLand noted.
Other newly implemented initiatives include a water-cooled chiller plant and air handling units resulting in a “major improvement” in the energy efficiency of the building, CapitaLand added.
Said CapitaLand’s group chief financial officer, Andrew Lim: “With the latest S$400 million in green loans, CapitaLand and our Reits have raised in excess of S$1.32 billion through sustainable finance.
“It is heartening to have like-minded banking partners in DBS and HSBC, who continue to share our long-term commitment towards sustainability, regardless of the challenges stemming from the Covid-19 situation.”
CapitaLand shares closed at S$2.93 on Wednesday, down S$0.05 or1.7 per cent.