UOL Group has secured a $120 million three-year green loan from United Overseas Bank (UOB) to redevelop the Pan Pacific Orchard hotel.
It is the first green loan for the group. The proceeds will be used to partially finance the redevelopment of the hotel into a biophilic and zero-waste 347-room hotel. Biophilic refers to a design concept that seeks to integrate nature with the built environment.
Pan Pacific Orchard was closed for redevelopment in April 2018 and is targeted to open in 2021.
UOL says the 23-storey hotel will set a new benchmark for green hospitality, with its self-sustaining sky terraces using rainwater harvesting systems and solar cells to light up the gardens. Other sustainable features include a food waste management system that transforms kitchen waste into nutrient water for gardens, and water dispensers that eliminate the need for plastic bottled water.
In January, the hotel was awarded the Building and Construction Authority's Green Mark Platinum. The award is Singapore's highest environmental certification, recognising projects whose design and performance adhere to best practices in environmental sustainability.
UOL Group chief executive Liam Wee Sin said: "The inaugural green loan demonstrates our commitment in greening our urban habitat. Pan Pacific Orchard will contribute to our Government's vision to transform Orchard Road into a green oasis in the city."
Mr Leong Yung Chee, UOB's head of corporate banking Singapore, said: "While the tourism industry is currently feeling the effects of Covid-19, UOL's move to redevelop the Pan Pacific Orchard will position Singapore well for a future where sustainable tourism is given more focus."
The inaugural green loan demonstrates our commitment in greening our urban habitat. Pan Pacific Orchard will contribute to our Government's vision to transform Orchard Road into a green oasis in the city.
UOL GROUP CHIEF EXECUTIVE
LIAM WEE SIN
Shares in UOL closed higher at $6.70 yesterday.