Construction firm Tiong Seng Holdings has secured $125 million worth of green loans and environmental performance-linked facilities from OCBC Bank and DBS Bank, it announced yesterday.

It said the $70 million green loan from OCBC will finance construction projects with "clear environmental benefits", such as certified green buildings and projects that improve resource efficiency and generate renewable energy.

The mainboard-listed firm noted that it has set up a framework guided by the green loan principles from the Loan Market Association to guide its management of the loan.

Meanwhile, Tiong Seng signed the $55 million in environmental performance-linked facilities with DBS to refinance some of its existing loans as well as for general corporate purposes.

This will make it eligible for interest rate and performance bond commission discounts if performance targets are met.

These targets will be based on a review and validation led by an external independent party at the end of each one-year period, the firm said.

"Apart from diversifying our sources of funding, these facilities will allow us to focus on our environmental and green objectives to make a positive difference in our society," said chief executive Pek Lian Guan.

Tiong Seng was a key winner of the Built Environment Leadership Awards conferred by the Building and Construction Authority in May. It received the pinnacle Platinum Star for its "sustained leadership, excellence and innovation in Singapore's built environment industry".