CapitaLand raises ₹1,700 crore green loans in India for business park project

CapitaLand, headquartered and listed in Singapore, owns and manages a global portfolio worth about S$133.3 billion as of 30 September. It manages six listed real estate investment trusts and business trusts as well as over 20 private funds

BENGALURU: Singapore’s CapitaLand Ltd has secured its first three green loans in India, worth ₹1,700 crore, from DBS Bank India Ltd and Hong Kong and Shanghai Banking Corporation Ltd India.

The debt will be used to finance the development of its green-certified International Tech Parks in Chennai, Gurugram, and Pune. The green loans mark CapitaLand’s entry into sustainable finance in India, the company said on Wednesday.

“...The securing of the first green loans in India demonstrates CapitaLand’s commitment to grow our business in a responsible manner as we create long-term value for our stakeholders. We are glad to work with like-minded partners such as DBS and HSBC who support CapitaLand’s aim to develop greener buildings while continuing to contribute to the environmental and social well-being of our communities," Vinamra Srivastava, CEO, Business Parks, CapitaLand India, said.

The four-and-a-half-year ₹625 crore (S$118.8 million1) and three-year ₹425 crore (S$80.8 million1) green loans raised from DBS will be used to fund the development of Phase 1 of International Tech Park Chennai, Radial Road and Phase 1 of International Tech Park Gurugram respectively.

The four-year ₹650 crore (S$123.5 million1) green loan provided by HSBC India will be used to finance the development of International Tech Park Pune in Kharadi.

Chew Chong Lim, managing director and global head of real estate, Institutional Banking, DBS, said DBS and CapitaLand have built a meaningful relationship over the years and in more recent times deepened our collaboration in finding sustainable financing solutions for green developments.

“We are delighted to partner CapitaLand on two green loans, which are also the first by any Singapore-based lender in India.

Sustainable financing in the real estate sector will continue to gain prominence in Asia, and DBS looks forward to collaborating with our customers in developing responsible financing solutions to meet the sustainability challenges ahead of us," Lim said.

As part of CapitaLand’s 2030 Sustainability Master Plan, the group aims to green its entire global portfolio by 2030. CapitaLand also targets to secure S$6 billion through sustainable finance such as sustainability-linked loans, green loans and green bonds.

With the addition of the three green loans in India, CapitaLand Group including its business units and real estate investment trusts have raised a total of more than S$3.6 billion through sustainable finance thus far.

“…As we enter a pivotal decade of change, we look forward to supporting CapitaLand as their banking partner in building a healthier, more resilient, and more sustainable future," said Hitendra Dave, Head, Global Banking & Markets, HSBC India.

In India, CapitaLand has a portfolio of over 20 business and IT parks, industrial, lodging and logistics properties across seven cities – Bengaluru, Chennai, Goa, Gurugram, Hyderabad, Mumbai and Pune.

CapitaLand, which is headquartered and listed in Singapore, owns and manages a global portfolio worth about S$133.3 billion as at 30 September. It manages six listed real estate investment trusts (Reits) and business trusts as well as over 20 private funds.

Source: https://www-livemint-com.cdn.ampproject.org/c/s/www.livemint.com/companies/news/capitaland-raises-rs-1-700-crore-green-loans-in-india-for-business-park-project/amp-11605692566732.html