CDL, MCL secure $847m green loan for joint residential developments

These are amongst the largest real estate green loans referencing the SORA.

City Developments Limited (CDL) and MCL Land have secured green loans amounting to $847 for financing two residential developments in Singapore under a 50:50 joint venture.

They received a 4.5-year $439m green loan financing package from DBS for its Northumberland Road project and a 4.5-year $418m green loan from UOB for its Tengah Garden Walk EC.

“As a sustainability pioneer that issued the first green bond by a Singapore company back in 2017 followed by the inking of the first green loan for new property developments in 2019, we have demonstrated that green financing offers an alternative financing avenue that plays a pivotal role in channelling capital towards building smarter, greener and more climate-friendly infrastructure. Including the latest loans for our two newly acquired projects, CDL has secured over S$3b of sustainable financing to date, in the form of various green loans, a green bond and a sustainability-linked loan,” said CDL Group CEO Sherman Kwek in a press statement.

These are amongst the largest green loans in real estate referencing the Singapore Overnight Rate Average (SORA) to date and are both developers’ first SORA-based green loans.