Frasers Property entity secures refinancing for $1.08 bil green loan

Frasers Property Limited’s joint venture entity has drawn down a five-year green term loan club facility worth $1.08 billion to refinance a loan for Frasers Tower. The loan terms ensure that the company enjoys a lower margin if the tower keeps its Green Mark GoldPLUS certification status, issued by Singapore’s Building and Construction Authority (BCA).Frasers Tower has already been given the highest attainable Green Mark Platinum rating, and includes features such as the use of sustainable and recycled materials for construction, and the installation of energy-efficient escalators, lifts and automated office perimeter lighting.Loo Choo Leong, group CFO of Frasers Property, commented that the group has secured more than $10 billion in green or sustainability-linked loans and bonds.In February this year, the firm announced a sustainability-linked loan of A$340 million and US$75 million for its Australia business Frasers Property AHL Limited (FPAHL). The loan provides interest rate savings from the second year if FPAHL achieves a prescribed reduction in greenhouse gas emissions.

Frasers Property Limited’s joint venture has secured a five-year green term loan club facility of $1.08 billion to refinance a loan for Frasers Tower that was due to be paid in September. Under the loan terms, the Singapore-based company will enjoy lower margins if the tower maintains a Green Mark GoldPLUS certification status, issued by the Building and Construction Authority (BCA).

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Frasers Tower has already been given the highest attainable Green Mark Platinum rating, with environmentally-friendly features such as the use of sustainable and recycled materials for construction, and energy-efficient escalators, lifts and automated office perimeter lighting. Participating banks include United Overseas Bank, DBS Bank, Industrial and Commercial Bank of China Limited (Singapore Branch), Oversea-Chinese Banking Corporation (OCBC), CIMB Bank Berhad (Singapore Branch), RHB Bank Berhad and ING Bank N.V. (Singapore Branch).

Loo Choo Leong, group CFO of Frasers Property, stated that the group has secured in excess of $10 billion in green or sustainability-linked loans and bonds. In February, the firm announced an A$340 million and US$75 million syndicated sustainability-linked loan for its Australia business Frasers Property AHL Limited (FPAHL). It provides interest rate savings if FPAHL achieves a prescribed reduction in annual absolute greenhouse gas emissions.

Furthermore, in July, Frasers Centrepoint Trust (FCT) announced a $419 million green loan and carbon credits with OCBC in order to finance asset enhancement initiatives, decarbonisation projects, and the procurement of energy-efficient technology for Tampines 1 shopping mall.

Frasers Property, which is listed on the Singapore Exchange, has total assets of $40.1 billion as at March 31. It is also the sponsor of two S-REITs — Frasers Centrepoint Trust (FCT) and Frasers Logistics and Commercial Trust — and Frasers Hospitality Trust, a stapled trust.

This move to secure a green loan attests to the company’s commitment to its decarbonisation journey, and is reflective of the growing trend towards green financing across the region.