One Raffles Quay Secures 113 Bil Sustainability Linked Loan Reduce Carbon Footprint

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One of Singapore’s most iconic buildings, One Raffles Quay, has recently secured a sustainability-linked loan (SLL) worth $1.13 billion. The loan will be used to fund various initiatives aimed at reducing the building’s carbon footprint, including cutting energy consumption and water usage by 20% to 29%. DBS will serve as the anchor lender and sole sustainability coordinator, providing $710 million, while Industrial and Commercial Bank of China (ICBC), Bank of China (BOC), and OCBC will collectively contribute the remaining $420 million over a period of five years.

According to DBS, this is one of the first sustainability-linked loans in Singapore that ties financial incentives to a building’s environmental performance. “This landmark sustainability-linked loan underscores our commitment to promoting sustainable real estate practices in Singapore’s prime commercial sector,” says Syahzan Kudus, CEO of Raffles Quay Asset Management, the asset manager of One Raffles Quay. He also mentions that the team is furthering their efforts to reduce carbon emissions, improve energy efficiency, and practice responsible water management across their entire portfolio.

Chew Chong Lim, Group Head of Real Estate and Shipping, Aviation, Logistics, and Transportation at DBS, comments, “This significant transaction highlights the continued momentum for sustainable finance in Asia, utilizing SLL structures to elevate sustainability standards at the asset level.”

Located in the heart of the Central Business District, One Raffles Quay is a Grade-A office complex owned by Hong Kong Land, Keppel REIT, and Suntec REIT. The development comprises a 50-storey North Tower and a 29-storey South Tower, providing a total of 1.3 million square feet of office space.

As the demand for sustainable buildings and responsible practices increases, this landmark deal showcases the continued efforts of businesses in Asia towards sustainable finance.