Singapore property developer and investor United Industrial Corporation (UIC) has secured its first sustainability-linked and green loans, which total S$300 million (US$225 million). The loans from UOB and DBS Bank comprise two three-year revolving credit facilities.
The S$200 million sustainability-linked loan, for partial refinancing of existing facilities and general corporate purposes, reinforces UIC’s long-term commitment towards sustainability and responsible growth. Proceeds from the S$100 million green loan will go towards a major upgrading of the 48-storey Singapore Land Tower at 50 Raffles Place.
This is the first major asset enhancement of Singapore Land Tower since the 2002 recladding of the building’s external façade. Built in 1982, Singapore Land Tower received the Building and Construction Authority (BCA)’s Green Mark GoldPlus certification in 2020.
The latest asset enhancement will introduce more green features when completed by end 2023. These include lush landscaped public spaces, energy efficient lifts and lighting, a low emissivity double-glazed external curtain wall system, and priority parking for electric/hybrid cars.
Both the S$100 million green loan and the S$200 million sustainability-linked loan are extended on a 50-50 basis by UOB and DBS Bank. They are issued under the UIC Sustainable Finance Framework, which is aligned with the Green Loan Principles and Sustainability-linked Loan Principles by the Loan Market Association and the Asia-Pacific Loan Market Association.
“Adopting green financing represents an important step towards integrating sustainability into our future business strategy and operations,” says UIC chief operating officer Jonathan Eu. “We have been incorporating environmentally-friendly features into our buildings and are on target to achieve the BCA’s Green Mark certification for all our buildings.
Singapore Land Tower, with average occupancy of over 94%, will remain a live building during the two-year refurbishment period.