Frasers Tower Secures Refinancing For S$1.08bil Green Loan
SINGAPORE – Frasers Property has clinched a S$1.08 billion green term loan facility to refinance a term loan facility that is backed by Frasers Tower that will mature in September, according to a Business Times report that was updated on Wednesday morning (23 August, SGT).
The five-year green loan was granted by a consortium of seven banks that consists of DBS, UOB, OCBC, CIMB, RHB, ICBC, and ING. In particular, DBS served as security agent for the deal, while UOB was the facility agent.
Notably, Frasers Tower is a 38-storey Grade A office building along Cecil Street. It is among six office assets overseen by Frasers Property’s subsidiary, Frasers Property Singapore.
Under the terms of the transaction, Frasers Property will get a reduction in margin in its loan if Frasers Tower keeps at least a Green Mark Gold Plus certification from Singapore’s Building and Construction Authority (BCA).
Two years ago, the premium office building clinched a Green Mark Platinum certification, the highest eco-friendly rating from the BCA back then. In 2022, the government agency introduced a new framework and the top attainable rating is currently Green Mark Platinum Positive Energy.
Frasers Property’s Group Chief Financial Officer Loo Choo Leong underscored the conglomerate’s continued patronage of eco-friendly financing since obtaining the first syndicated green loan in Singapore in 2018.
“To date, the group has secured more than S$10 billion of green or sustainability-linked loans and bonds, attesting to our commitment to our decarbonisation journey,” Loo Choo added.