Tiong Seng secures $125m green loan from OCBC, DBS

It will be used to build green buildings and generate renewable energy.

Construction company and property developer Tiong Seng Holdings has secured $125m worth of green loan and environmental performance-linked facilities from OCBC Bank and DBS Bank, according to an SGX filing.

These facilities are reportedly the first sustainable finance transactions for a construction and civil engineering company in Southeast Asia, the group said.

Tiong Seng plans to use its $70m green loan from OCBC to finance the construction of certified green buildings and projects for improving resource efficiency and generating renewable energy.

The group also signed its first $55m Environmental Performance-Linked Facilities with DBS Bank to refinance some of its existing loans.

With the facilities, Tiong Seng will be eligible for interest rate and performance bond commission discounts, should the group meet or exceed the agreed performance targets, which will be based on a review and validation led by an external independent party at the end of a one-year period.