DBS, a leading financial services group headquartered in Singapore, has credited real estate firm City Developments Limited (CDL) with a $180 million loan. The three-year loan will see the interest rates linked to the company’s sustainability-related performance.
CDL will channel the loan towards funding operations and improving the firm’s property quality, performance and method of building that is aimed towards fighting climate change.
Under the loan terms, interests rates will be achieved in various ways. For example, CDL can earn the rates when it achieves mutually agreed and sustainability-related performance targets. These targets include new ideas that positively impact the United Nations Sustainable Development Goals. To rate these innovations, we have an expert panel that will operate independently.
Secondly, CDL can earn the interests by putting in place mechanisms that will ensure it remains listed on at least one top global sustainability index.
Support for UN SDGs
The loan was issued under DBS’s initiative to promote UN SDGs. Specifically, the loans will cater for industry, innovation and infrastructure; sustainable cities and communities; and climate action goals.
Another loan term saw CDL pledged its commitments towards sustainability by achieving an average of two innovations per year by 2030.
Elsewhere, the lending platform has channelled $5 billion towards diverse, sustainable financing over the last two years. The platform has been focusing on firms that are resource-efficient and those supporting environmental conservations.
Singapore’s Focus on Green Development
At the moment, the government of Singapore has rolled out measures to enhance sustainability with a focus on fields such as green property growth. The loan by DBS to CDL is geared towards helping the state achieve these goals.
Commenting on the initiative, Tai Lee Siang from the BuildSG notes that financing green initiatives will help in curbing the threat of climate change.
CDL focuses on fields in residential, commercial, hotels, fund management, property management, among other products.