SINGAPORE - Property investment and development firm Ho Bee Land has secured its first green loan, which will go towards acquiring a commercial development in London.
The £200 million (S$352.9 million) bridging loan from HSBC was also touted as one of Singapore's first green loans.
Ho Bee said the loan was executed under the firm's green finance framework, which has been certified by a third-party green assurance provider Sustainalytics. HSBC also served as the green restructuring adviser in the commissioning and development of this new framework.
Green loans are not to be confused with sustainability-linked loans, which can be used for everyday corporate purposes in alignment with pre-set environmental, social and governance criteria. Proceeds raised from green loans can only fund specific projects with positive environmental benefits.
Ho Bee has secured the bridging loan to help finance its £650 million (S$1.15 billion) acquisition of Ropemaker Place, a 21-storey freehold Grade A office building in London.
Ropemaker Place has achieved a green building pre-certification with LEED (Leadership in Energy and Environmental Design) and excellent rating with BREEAM, a sustainability assessment scheme.
Ho Bee's chairman and CEO Chua Thian Poh said: "We have always prided ourselves in developing and investing in quality properties and now, we are able to tap green financing to fund projects that are both environmentally friendly and sustainable."
HSBC Singapore's head of commercial banking Alan Turner said: "By setting up its green finance framework, Ho Bee has been able to realise its green vision and ambitions as well as provide it with the necessary infrastructure to tap green financing in the future.
"Moreover, the deal is good news for Singapore's green financing credentials as it sets the template for other corporates seeking similar green transactions."
Sustainalytics' product manager Trisha Taneja said: "The HSBC loan to Ho Bee Land… is a significant step to scale the flow of capital to environmentally impactful projects."
