Tong Eng Group secures $71m green loan from OCBC

Proceeds will be used for the refinancing of Tong Eng Building.

Property developer Tong Eng Group has secured a $71m SORA green loan with OCBC Bank, according to a press release.

This mark’s OCBC and Tong Eng Group’s first green loan referencing SORA. This is also OCBC’s third SORA-based corporate loan, with the first two extended to CapitaLand and Sembcorp Industries in June and October, respectively.

The proceeds from the green SORA-based loan will be used for the refinancing of Tong Eng Building, which received the Building and Construction Authority (BCA) Green Mark Platinum re-certification last month.

The interest rate of this $71m revolving loan facility will reportedly be calculated based on the 3-month Compounded SORA published by the  Monetary Authority of Singapore (MAS), according to the joint statement by OCBC and Tong Eng.

Tong Eng will be informed on the first day of the loan, and thereafter, on each rollover of the loan, of the amount of interest due on their outstanding loan at the end of an interest period.

To date, OCBC said that it has extended more than $1.3b in corporate and retail loans referencing SORA, which includes close to $1b in SORA-based home loans.