Phoenix Residential Pte Ltd and Phoenix Commercial Pte Ltd (“the Borrowers”), both 70:30 joint ventures between Allgreen Properties Ltd and Kerry Properties Ltd, have secured a S$861.75 million green loan from DBS Bank, Maybank and OCBC Bank to finance a mixed-use development project in Pasir Ris in Singapore.

This is the maiden green loan for both Allgreen Properties Ltd and Kerry Properties Ltd, with DBS and OCBC Bank acting as Joint Green Loan Advisors.  DBS, Maybank and OCBC Bank are Joint Mandated Lead Arrangers, while OCBC Bank is also Facility Agent, Security Agent and Account Bank for this transaction.

The mixed-use development will comprise of 487 residential apartments (known as Pasir Ris 8) integrated with a four-level retail podium that has a net lettable area of about 268,000 square feet. Development plans for the mixed-use development project are aligned with the criteria for Building and Construction Authority (BCA) Green Mark Gold^Plus and Green Mark Platinum Award for the residential component and retail component respectively.  Some of its green features include efficient air conditioning systems, energy saving vertical transportation systems, water efficiency fittings and systems and climate responsive design.

This green loan was raised under a newly set up Green Loan Framework (the “Framework”) by Allgreen Properties Ltd, with support from OCBC Bank. In addition to eligibility criteria of green projects, the Framework will provide necessary guidance to Allgreen Properties Ltd and its subsidiaries, including the Borrowers, in the allocation and management of the proceeds, aligned with the relevant international principles and guidelines[1].

Mr Lee Yew Kwung, Chief Executive Officer of Allgreen Properties Ltd (李宙鸿, 总裁, 长春产业有限公司) said, “We are pleased to have DBS Bank, Maybank and OCBC Bank supporting us to achieve this sustainability milestone. We look forward to having the first green loan to fund this project as part of our sustainability strategy.  Allgreen Properties Ltd and Kerry Properties Ltd are committed to fostering sustainable development and creating shared value for all stakeholders in the region.”

Ms Tan Su Shan, Group Head of Institutional Banking at DBS (陈淑珊，星展银行集团企业机构银行董事总经理兼主管), said, “We are delighted to partner Allgreen Properties Ltd and Kerry Properties Ltd on their maiden green loan. This facility will support their plans to ensure that their mixed-use development project in Pasir Ris is aligned with BCA’s criteria for green buildings, and in turn contribute to the national goal of greening 80% of Singapore’s buildings under the Singapore Green Plan 2030. As more of our clients advance on their sustainability agendas, the financial industry will need to double down on our shared commitment to collectively realise a greener, more sustainable future for all.”

Mr Gregory Seow, Head of Global Banking at Maybank Singapore (萧鸿赓，马来亚银行环球银行新加坡总管), commented, “We are pleased to be part of the sustainability journey of distinguished real estate groups, Allgreen Properties Ltd and Kerry Properties Ltd. We are committed to sustainable financing with positive societal and environmental impact which will benefit local communities and our clients’ long term business viability.”

Ms Elaine Lam, Head, Global Corporate Banking, OCBC Bank (蓝淑燕, 总裁, 集团企业银行, 华侨银行), said, “We are pleased to partner with Allgreen Properties and Kerry Properties on their maiden green loan, which is another showcase of the real estate industry’s continued commitment to sustainable development.  Our relationship with Allgreen Properties – one of Singapore’s leading property developers – has spanned three decades, and as Singapore moves full steam ahead with Green Plan 2030, developments such as this one, with energy-efficient systems and climate responsive designs, will play an integral role in the growth of an eco-friendly city.

[1] Green Loan Principles ("GLP") 2021 by the Loan Market Association, Asia Pacific Loan Market Association and Loan Syndications and Trading Association.