United Industrial Corporation Limited (UIC) has secured its first green and sustainability-linked loans from UOB and DBS Bank.

The loans comprise two three-year revolving credit facilities that total up to $300 million.

The $200 million sustainability-linked loan will go towards partially refinancing of existing facilities and general corporate purposes, while proceeds from the $100 million green loan will go towards the major upgrading of the 48-storey Singapore Land Tower.

Singapore Land Tower, with an average occupancy of over 94%, will remain a live building during the two-year refurbishment period.

The upgrade is the first major asset enhancement of the building since the 2002 recladding of the building’s external façade. The building received the Building and Constuction Authority’s (BCA) Green Mark GoldPlus certification in 2020.

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The green and sustainability-linked loans are extended on a 50-50 basis by both UOB and DBS Bank and issued under the UIC Sustainable Finance Framework.

SEE:UIC sees 85% plunge in FY20 earnings of $90.2 mill due to lower revenue, fair value losses

The Framework is aligned with the Green Loan Principles and Sustainability-linked Loan Principles by the Loan Market Association and the Asia Pacific Loan Market Association.

“As we strive towards becoming a more responsible business, we will place a greater focus on key ESG factors that positively impact UIC’s stakeholders,” says UIC’s COO Jonathan Eu.

“UIC is a major developer and manager of real estate; we believe adopting green financing represents an important step towards integrating sustainability into our future business strategy and operations,” Eu adds.

“Embedding ESG considerations into business strategies and operations is an ongoing journey for many companies… We are proud to be able to support UIC, a client with whom we have had a longstanding relationship, transition to a greener business,” says Leong Yung Chee, head of corporate banking Singapore at UOB.

“DBS is pleased to be able to partner UIC on its maiden green loan and maiden sustainability-linked loan. UIC’s dual commitment points to the growing traction of sustainable financial instruments among forward-thinking companies,” says Chew Chong Lim, managing director and group head of real estate, institutional banking at DBS.