Keppel REIT launches Green Financing Framework

It outlines guidelines for proceeds use, project evaluation, fund management, and reporting.

Keppel REIT Management Limited, as manager of Keppel REIT, has introduced a Green Financing Framework aimed at advancing its sustainability agenda. 

Aligned with the International Capital Market Association’s Green Bond Principles (GBP) 2021 and the Green Loan Principles (GLP) 2023, the framework sets out guidelines for the use of proceeds, project evaluation, fund management, and reporting processes. DBS served as the exclusive advisor for this framework.

Moody’s Investors Service has externally reviewed the framework, assigning it a sustainability quality score of SQS2 (Very good), highlighting its significant contribution to sustainability.

“Keppel REIT is steadfast in our commitment to sustainability and is dedicated to integrating ESG factors into our strategy and operations, said Koh Wee Lih, chief executive officer of the Manager. 

“The Framework will guide our investments towards building a future-oriented and resilient portfolio, while supporting our longterm sustainability goals,” he added.

Currently, 63% of Keppel REIT’s total borrowings are sustainability-focused, bolstered by its portfolio of green-certified properties. Recently, Keppel REIT issued A$175m in floating-rate green notes due 2027 under its Multicurrency Debt Issuance Programme, with proceeds earmarked for acquiring a 50% interest in 255 George Street, Sydney, meeting the framework’s eligibility criteria.

All properties within Keppel REIT are green certified, reflecting its strong sustainability commitment. In Singapore, all assets hold Platinum certification under the Building and Construction Authority Green Mark scheme, while in Australia, most operational buildings achieve 4.5 Stars and above in the NABERS Energy Rating.

Moreover, T Tower in South Korea and KR Ginza II in Japan have been recognized with the LEED Building Operations and Maintenance Platinum Award and the CASBEE A rating, respectively.