CapitaLand secures the first three green loans for its business park developments.
The three green loans mark CapitaLand’s first foray in sustainable finance in India. Proceeds from the green loans will be used to finance the development of its green-certified International Tech Parks in Chennai, Gurgaon, and Pune.
CapitaLand has secured its first three green loans in India, totalling Rs 1700 crore, from DBS Bank India Limited (DBS) and the Hongkong and Shanghai Banking Corporation Limited India (HSBC India) for the development of business parks in Chennai, Gurgaon and Pune.
The three green loans mark CapitaLand’s first foray into sustainable finance in India. Proceeds from the green loans will be used to finance the development of its green-certified international tech parks in Chennai, Gurgaon and Pune, the company said in a statement.
The four-and-a-half-year Rs 625 crore and three-year Rs 425 crore green loans provided by DBS will be used to finance the development of Phase 1 of International Tech Park Chennai, Radial Road and Phase 1 of International Tech Park Gurgaon respectively.
The four-year Rs 650 crore green loan provided by HSBC India will be used to finance the development of International Tech Park Pune, Kharadi.
Headquartered and listed in Singapore, the company owns and manages a global portfolio worth 133.3 billion Singapore dollars as on September 30, 2020.
CapitaLand manages six listed real estate investment trusts (REITs) and business trusts as well as over 20 private funds. In India, it has a strong presence with 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 places sustainability at the core of what we do. We integrate sustainability into every stage of our real estate life cycle, from investment to design, development and operations, garnering international recognition for our efforts in greening our business parks,” Vinamra Srivastava, CEO, Business Parks, CapitaLand India.
“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,” he 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,” said Chew Chong Lim, Managing Director & Global Head of Real Estate, Institutional Banking, DBS.
“We are delighted to have supported CapitaLand on multiple landmark green loan transactions across their portfolio in Singapore and India. 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 and Markets, HSBC India.
As part of CapitaLand’s 2030 Sustainability Master Plan, the group aims to green its entire global portfolio by 2030. CapitaLand Limited also targets to secure 6 billion Singaporean dollars through sustainable finance such as sustainability-linked loans, green loans and green bonds. This is triple the 2 billion Singaporean dollars raised to date through sustainable finance.