Hoi Hup Realty bags maiden $332.5m green loan

Andaz Singapore is the latest BCA Green Mark certified property for Hoi Hup Realty.
Andaz Singapore is the latest BCA Green Mark certified property for Hoi Hup Realty.PHOTO: M+S

SINGAPORE (THE BUSINESS TIMES) - Property developer Hoi Hup Realty has secured a $332.5 million green loan to partially finance its $475 million acquisition of Andaz hotel.

The loan was obtained through Hoi Hup's subsidiary, Ophir-Rochor Hotel, and is the group's first green loan.

It is also the first green loan for South-east Asia's hospitality industry, according to a joint statement by OCBC Bank and Hoi Hup on Monday (Dec 9).

OCBC Bank acted as the green loan adviser, while Maybank Singapore and United Overseas Bank were the other club banks under the facility.

Andaz Singapore is the latest BCA Green Mark certified property for Hoi Hup Realty. The five-star hotel received the BCA Green Mark (Hotel) Goldplus Award in 2013, for having environment-friendly features that yield energy and water savings.

The green loan was issued under Hoi Hup Realty's green loan framework, developed for the acquisition of Andaz Singapore in accordance with green loan principles the Loan Market Association and the Asia-Pacific Loan Market Association issued in 2018.

"It provided guidelines for Hoi Hup Realty's evaluation of the eligibility of Andaz Singapore as a green project based on its sustainability objectives, and will further guide the developer in the management of net proceeds from the green loan," Hoi Hup and OCBC said.

Wong Swee Chun, chairman of Hoi Hup Realty noted that this green club loan demonstrates the group's commitment to sustainability in the built environment.

Linus Goh, head of global commercial banking at OCBC Bank, added: "This transaction also highlights the urgency in the shift towards green finance in our region, and we at OCBC are committed to working with our customers to uncover new opportunities across industries to finance sustainable initiatives which combat climate change."

 

Green finance involves making sure financial services such as borrowing and lending, as well as investing, deliver both returns and environmentally positive outcomes, including dealing with climate change.

OCBC intends to build a sustainable finance portfolio of $10 billion by 2022. The bank added that this deal serves as a "momentum builder heading into the new year", given Singapore's ambitions to be a hub for green finance.

Just last month, the Monetary Authority of Singapore announced that it would develop grant schemes to support the growth of green and sustainability-linked loans, among other initiatives.

Singapore also said it will invest US$2 billion (S$2.7 billion) in funds that have a strong green focus as part of its ambition to be a leading centre of green finance in Asia and globally.