PGIM Real Estate has secured a S$900 million green loan from DBS, OCBC Bank and UOB for the refinancing of NEX, a major retail mall in Singapore. This deal marks a significant foray into sustainable finance for PGIM Real Estate in the region.
NEX recently attained the Building and Construction Authority (BCA) Green Mark Goldplus certification, an improvement on their previously held BCA Green Mark Gold certification. This achievement came on the back of enhancements to their recycling programme to include e-waste, chiller plant room optimisation program, the implementation of a green procurement policy, installation of a water management system to monitor water consumption and commitment to the formation of a green committee with participation from tenants, among other initiatives.
PGIM Real Estate, the asset manager of NEX, led the effort to establish a Green Loan Framework (“Framework”) together with the other shareholders of Nex and the bank consortium of DBS, OCBC Bank and UOB as Joint Green Loan Advisors. This green loan was raised under this Framework, which was prepared in line with the relevant international principles and guidelines1.
DBS, OCBC Bank and UOB are also Joint Mandated Lead Arrangers for this transaction. “The strategic improvements completed at NEX geared toward furthering the sustainability of the asset are demonstrative of PGIM Real Estate’s experience in driving sustainability initiatives as well as the broader commitment to incorporating ESG principles across our global portfolio,” said Benett Theseira, PGIM Real Estate’s head of Asia Pacific. “We’re proud to have played a part in securing this sizeable green loan and achieving BCA Green Mark Goldplus certification for the asset.”
Chew Chong Lim, Managing Director and Group Head of Real Estate, Institutional Banking, DBS, said, “With sustainability fast becoming a top business imperative, we are seeing more companies looking to adopt responsible financing practices as part of their corporate strategy. DBS is pleased to partner future-oriented companies such as Gold Ridge and PGIM Real Estate as they push forward on their sustainability journeys, and we will continue to foster more of such collaborative efforts with the business community as we work together to tackle the sustainability challenges that lie before us.”
Ms Elaine Lam, Head, Global Corporate Banking, OCBC Bank, said, “We are pleased to support Gold Ridge on their maiden green loan, an extension of the strong relationship we have built with PGIM Real Estate over the years. Their resilience has seen them through challenging times, and this pandemic is no exception. We are committed to continue our journey and are excited about this new partnership in sustainable finance. Together, with our shared belief in the importance of sustainability, we look forward to the development of greener, low-carbon cities.”
Ms Lim Lay Wah, Group Head of Global Financial Institutions Group (Global Financial Sponsors/Property Funds, Non-bank Financial Institutions, Banks), UOB, said, “As we support Singapore’s transition to a lower carbon economy, we are collaborating with like-minded partners, including Gold Ridge and PGIM Real Estate, to lessen the environmental impact of the country’s existing buildings. The green loan to Gold Ridge is the latest example of how we work together with our clients to contribute to the community’s long-term economic, social and environmental well-being. We are encouraged by the increased interest and demand for green financing from building owners as they incorporate sustainability considerations into their corporate agenda. UOB has a strong pipeline of clients seeking to forge a more sustainable future.”
1 Green Bond Principles ("GBP") 2018 by the International Capital Market Association; Green Loan Principles ("GLP") 2020 by the Loan Market Association, Asia Pacific Loan Market Association and Loan Syndications and Trading Association.