Seamlessly quilted in Singapore’s Central Business District, Frasers Tower is a premium Grade A commercial development that boasts strong sustainability and tech-forward features.
SINGAPORE, 22 AUGUST 2023
Frasers Property Limited (“Frasers Property”, and together with its subsidiaries, the “Group”) announced that its joint venture entity has drawn down a five-year green term loan club facility (“Green Loan”) totalling S$1.08 billion. The Green Loan, arranged by Frasers Property and structured based on the Green Loan Principles1, has received strong support from a consortium of seven banks.
Proceeds from the Green Loan will go towards the refinancing of the maturing term loan facility, due in September 2023, for Frasers Tower, a premium Grade-A commercial building located on Cecil Street in Singapore’s Central Business District. Under the loan terms, the Green Loan enjoys a reduction in margin if Frasers Tower maintains at least a Green Mark GoldPLUS certification status that is issued by Singapore’s Building and Construction Authority (“BCA”). Frasers Tower has already been accorded the higher rating of Green Mark Platinum.
Mr Loo Choo Leong, Group Chief Financial Officer of Frasers Property, said, “Since successfully raising Singapore’s first syndicated green loan in 2018, Frasers Property has continued to deepen our commitment to sustainable financing. To date, the Group has secured more than S$10 billion of green or sustainability-linked loans and bonds, attesting to our commitment to our decarbonisation journey.”
Frasers Tower is a 38-storey premium Grade-A office tower with an adjacent three-storey cascading retail podium. It is one of six office properties managed by Frasers Property Singapore, a strategic business unit of the Group. Its environmentally friendly design and resource-efficient features2 include the use of sustainable and recycled materials during construction such as green cement and recycled concrete aggregates. Its double-glazed façade design reduces solar heat gain while its building systems optimise water and energy efficiency and improve indoor air quality.
The lush greenery at Frasers Tower’s community zones and park further lowers surface temperature of the building. Rainwater is also recycled to irrigate the building’s flora and run the water-cooling system. In addition to its direct link to the Tanjong Pagar MRT station, the office building provides secured bicycle lots with end-of-trip facilities and electric vehicle recharging stations to encourage more sustainable commuting.
Participating banks, which have been given the title of Mandated Lead Arrangers, include United Overseas Bank Limited, DBS Bank Ltd., Industrial and Commercial Bank of China Limited Singapore Branch, Oversea-Chinese Banking Corporation Limited, CIMB Bank Berhad, Singapore Branch, RHB Bank Berhad, and ING Bank N.V., Singapore Branch. The Facility Agent is United Overseas Bank Limited, while DBS Bank Ltd. is the Security Agent for the transaction.
1 Dated 21 March 2018 and as last revised in February 2023. Issued by the Loan Market Association, the Asia Pacific Loan Market Association and the Loan Syndications & Trading Association.
2 Other green features that have been implemented at Frasers Tower include energy-efficient escalators and energy regenerative lifts, where heat generated by elevators during use is converted into reusable energy for the building. A ductless fan system, which operates with low static pressure loss, helps to reduce overall power consumption. Motion sensor lighting controls are incorporated into common toilets, car parks, lift turnstile systems and staircases to maximise energy savings. Automated office perimeter lighting also helps maximise daylight savings.