09 Jun 2020
SINGAPORE, 9 JUNE 2020
Frasers Property Limited (“Frasers Property”, and together with its subsidiaries, the “Group”) today announced that it has, through its subsidiary, Fernvale Lane Pte. Ltd., secured a S$350 million green loan under the LMA/APLMA Green Loan Principles1 to finance its Fernvale Lane Executive Condominium (“EC”) development (“Fernvale Lane Green Loan”). This will be Singapore’s first green loan for an EC development, and the Group’s 10th green financing initiative.
Mr Loo Choo Leong, Group Chief Financial Officer of Frasers Property, commented, “Our Group is a key participant in the fast-evolving green financing market in the region because we have been quick to recognise the support from financial institutions for green financing. Including this latest green loan, as a Group, we have raised around S$42 billion in green financing to date. Tapping the green loan market is not only an integral part of our capital management strategy, but a natural extension of our business focus on sustainability, and we intend to keep adding to Frasers Property’s track record of raising green financing.”
Fernvale Lane Pte. Ltd. is 80% held by a wholly-owned subsidiary of Frasers Property and 20% held by CSC Land Group (Singapore) Pte. Ltd.3. Fernvale Lane Pte. Ltd. will develop an EC with approximately 500 units at the Fernvale Lane site, which the Group won in a Government Land Sale exercise in March 2020. On completion, the development is targeted to obtain BCA Green Mark GoldPLUS, adding to its appeal to first-time homebuyers and upgraders. The site has attractive locational attributes, including its proximity to amenities, the Seletar Aerospace Hub and the upcoming Punggol Digital District, on top of easy access to the CTE and key transportation nodes.
Fernvale Lane Green Loan is the Group’s 10th green financing initiative. The Group raised its first green financing, which was also Singapore’s and Southeast Asia’s first syndicated green loan, in September 2018 for the refinancing of Frasers Tower. The Group subsequently secured the first corporate syndicated green loan in Australia as well as Singapore’s first green loan with pricing structure linked to BCA Green Mark4.
1 “Green Loan Principles” means the “Green Loan Principles” originally dated 21 March 2018 with the latest update in May 2020 issued by the Loan Market Association (“LMA”) and Asia Pacific Loan Market Association (“APLMA”). The Green Loan Principles set out a clear framework to promote integrity in the development of the green loan market by clarifying the characteristics of a green loan, based around the following four core components:
i. Use of Proceeds
ii. Project Selection and Evaluation
iii. Management of Proceeds
2 Includes gross funds raised by the Group’s joint ventures and REITs
3 CSC Land Group (Singapore) Pte. Ltd. is the development arm and a wholly-owned subsidiary of China Construction (South Pacific) Development Co. Pte. Ltd. The latter is the regional subsidiary of China State Construction Engineering Corporation (CSCEC), the world’s largest investment and construction conglomerate (as stated on the corporate website of CSCEC).
4 The BCA is an agency under the Ministry of National Development, championing the development of an excellent built environment for Singapore. The BCA Green Mark is a green building rating system to evaluate a building for its environmental impact and performance. It provides a comprehensive framework for assessing the overall environmental performance of new and existing buildings to promote sustainable design, construction and operations practices in buildings.