SINGAPORE (THE BUSINESS TIMES) - OCBC Bank has provided a green loan of 115 billion South Korean won (S$132.6 million) to M&G Real Estate Asia to refinance an investment in Northgate, a green building in Seoul's central business district, with the bank as the sole lender and green adviser.
The loan is South Korea's first green loan supporting the property sector, OCBC said in a statement on Friday (Aug 21). It is also the bank's first sustainable finance transaction in the country.
The loan proceeds will be used to refinance existing advances within M&G Asia Property Fund, which have been extended for the investment in Northgate. The fund is managed by M&G Real Estate Asia.
Northgate is a high-rise office building with green features, including rainwater recycling systems, water-efficient fixtures, LED lights in common areas, and building automation systems to control heating, ventilation, air conditioning and lighting fixtures. Environmentally-friendly materials are also used in the building's cleaning and general upkeep.
In 2016, Northgate received the Leadership in Energy and Environmental Design for Existing Buildings Operations and Maintenance Gold rating from the US Green Building Council.
OCBC Bank head of global corporate banking Elaine Lam said the lender is looking to grow its sustainable finance portfolio to S$25 billion by 2025.
Shares of OCBC was down eight cents or 0.9 per cent to $8.75 on an ex-dividend basis at the midday break on Friday.