ComfortDelGro gets OCBC green loan for hybrid buses in Australia

ComfortDelGro's Australian subsidiary has secured a A$25 million (S$23.1 million) green loan from OCBC Bank to finance its hybrid bus fleet in Victoria, the transport giant announced in a media statement yesterday.

The loan was structured according to the green loan principles issued in 2018 by the Loan Market Association and Asia Pacific Loan Market Association.

Proceeds from the green loan will be used to purchase 50 hybrid buses. Delivery of these environmentally friendly buses has begun, with the last batch of buses expected in mid-2022, ComfortDelGro said.

These low-floor buses will feature Volvo's parallel hybrid driveline and meet Euro VI emission standards. According to ComfortDelGro, tests have shown that the Volvo hybrid driveline reduces nitrogen oxide and particulate emissions by up to 50 per cent, and lowers fuel consumption by as much as 39 per cent in mixed traffic.

The company said the hybrid buses consume 30 per cent less fuel and are quieter when idling at and departing from stops.

Mr Yang Ban Seng, managing director and group CEO of ComfortDelGro, said sustainability considerations are at the core of its business strategy, and the loan is another milestone following the group's inclusion in the Dow Jones Sustainability Asia Pacific Index last September.

Separately, the loan also expands OCBC Bank's sustainable finance portfolio to the transportation sector, and is in line with the lender's goal of building a $10 billion sustainable finance portfolio by 2022.

THE BUSINESS TIMES

A version of this article appeared in the print edition of The Straits Times on January 22, 2020, with the headline 'ComfortDelGro gets OCBC green loan for hybrid buses in Australia'. Print Edition | Subscribe