UOB issues $140m of maiden green loans

It will be used to build a hotel and a construction and prefabrication hub.

United Overseas Bank (UOB) has extended its first green loans to Lucrum Capital and Teambuild Engineering & Construction, which together secured $140m to finance the construction and operation of green buildings in Singapore, an announcement revealed.

Lucrum Capital will use two green loans under the UOB Real Estate Sustainable Finance Framework for the construction of a six-storey hotel at 110/112 Killiney Road. The building’s design will include climate-responsive features, and are expected to lead to 30% in cost savings.

Meanwhile, Teambuild Engineering & Construction will its green term loan for its new integrated construction and prefabrication hub (ICPH) at 9 Defu South Street 1. The building will be equipped with green walls and rooftop solar panels with a total solar capacity of 58.9 megawatt-peak.

The loan was extended under UOB’s Real Estate Sustainable Finance Framework, the first lending framework for the sector established by a Singapore bank, according to UOB.

The financing framework sets out the eligibility criteria, including sustainability strategy, objectives, ratings and performance targets, for companies to meet when applying for green loans or sustainability-linked loans. Under the framework, UOB will record and monitor the borrower’s management of loan proceeds, as well as track the sustainability metrics as agreed with the company.

The Building Construction Authority (BCA) has earlier set a target for 80% of buildings to be certified green by 2030.

KPMG in Singapore advised UOB in the development of the UOB Real Estate Sustainable Finance Framework, which is in line with the Green Loan Principles and the Sustainability Linked Loan Principles issued by the Loan Market Association in 2018 and 2019, respectively.

Also Read

Tighter policies drag South Korean household loan growth in September

SME loans in Taiwan rose in August

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit