DBS, along with ICBC, Bank of China (BOC) and OCBC, has handled an $858 million sustainability-linked loan for an office complex in the Asian city-state.

The office complex in Singapore, One Raffles Quay – home to tenants such as EY and Deutsche Bank – has secured a S$1.13 billion ($858 million) sustainability-linked loan (SLL) anchored by DBS.

The financing will support enhancements to the complex, which is certified with a green rating by the Asian city-state’s Building and Construction Authority. The buildings are jointly owned by Hongkong Land, Keppel REIT [real estate investment trust] and Suntec REIT. 

Singapore-listed DBS has provided S$710 million as the anchor lender and sole sustainability coordinator. In addition, three other banks – ICBC, BOC and OCBC – will jointly contribute S$420 million under the five-year facility.

Proceeds will be used to refinance an existing loan and for general working capital purposes including asset enhancement initiatives, DBS said in a statement yesterday. 

The financing is an example of the kind of Green-related debt and bond instruments that have been a feature in certain financial markets in recent years, fuelled by policies designed to handle climate change and reduce carbon emissions. 

The owners of the Singapore complex said they wish to cut energy consumption and water usage between 20 per cent and 29 per cent, respectively. 

“By aligning our financing strategy with measurable ESG targets, we are reinforcing our focus on carbon reduction, enhanced energy efficiency, and responsible water stewardship across our entire portfolio,” Syahzan Kudus, CEO of Raffles Quay Asset Management, the asset manager of ORQ, said.

ORQ is a premier Grade A office building located between Raffles Place and Marina Bay. The building comprises two towers, offering a total of 1.3 million square feet of office space. Major tenants include Deutsche Bank, EY and ByteDance.