Keppel Land has signed its first sustainability-linked loan from DBS Bank on June 1. The $150 million facility references the Singapore Overnight Rate Average (SORA), making it the first such loan for the group.
The loan follows Keppel Land’s first green loan facility of RMB850 million ($176.4 million) secured in 2019 for the development of Seasons City (Phase 1) in the Sino-Singapore Tianjin Eco-City in China.
The facility’s interest rate comprises a compounded daily SORA rate calculated in arrears and an applicable margin. The loan also incorporates interest rate reductions linked to pre-determined environmental, social and governance (ESG) targets such as Keppel Land achieving a five-star rating in the 2021 Global Real Estate Sustainability Benchmark (GRESB) real estate assessment.
