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CapitaLand Development secures among first-of-its-kind sustainability-linked loans aligned with both WELL certification and Green Mark commitment
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Artist’s impression: 7 Science Park Drive at the Geneo life sciences and innovation cluster has achieved the BCA Green Mark Platinum Super Low Energy and the WELL Core Precertification.
CapitaLand Development (CLD) has successfully secured two pioneering bilateral sustainability-linked loans (SLLs) totalling S$600 million with DBS Bank Ltd. (DBS) and Oversea-Chinese Banking Corporation Limited (OCBC). These loans are among the first-of-its-kind to be aligned with both WELL Certification for human well-being and Green Mark certification for environmental sustainability, across a selected real estate portfolio.
These landmark loans underscore CLD and the two banks’ joint commitment to sustainability, as they break new ground in combining health and environmental performance targets. The SLLs link financial incentives to CLD’s achievement of sustainability milestones, including enhancements to the well-being of building occupants and environmental efficiency of the developer’s portfolio. Proceeds of the SLLs will be used for general corporate purposes.
Leading the Way with an Innovative, Dual-Certification Approach
In today’s rapidly evolving sustainability landscape, real estate owners and developers face growing pressure to reduce environmental impact and ensure the well-being of their occupants. CLD is leading the way by combining these two critical aspects into its financing activities.
CLD’s dual-certification approach supports sustainable development by setting a new benchmark in the real estate industry, driving measurable outcomes on both human health and environmental fronts. The WELL Certification, developed by the International WELL Building Institute (IWBI), focuses on enhancing human well-being through a range of health-related factors, including air and water quality, nourishment, lighting, and mental well-being.
By also integrating Green Mark Certification, developed by Singapore’s Building and Construction Authority (BCA), CLD actively enhances the environmental performance of its portfolio. This certification contributes to national and regional sustainability goals by ensuring that buildings under CLD portfolio meet rigorous standards for energy efficiency, water conservation, and carbon emissions reduction.
Giovanni Cossu, Head of Sustainability at CLD, emphasised the broader impact of this financing strategy, “The SLLs exemplify our commitment to developing spaces that prioritise environmental sustainability, but also the health and wellbeing of occupants. By embedding health and green performance targets into our financial framework, we are reinforcing CapitaLand’s leadership in sustainable development, while aligning with Singapore’s vision for net-zero and healthier communities.”
A Path Forward for Sustainable Finance
In rapidly-urbanising Asia, these innovative loans exemplify how financial mechanisms can effectively tackle sustainability challenges.
DBS sees this as a crucial step in the evolution of sustainable finance. Chew Chong Lim, Group Head of Real Estate, Institutional Banking Group, DBS said, “Amid a growing emphasis on sustainable development in the region, more developers are looking to deliver spaces that are both good for the environment and the people that use them. With this in mind, CLD worked with DBS to combine these two key elements into one loan facility. We are honoured to have advised CLD on this innovative loan structure which links performance to both the WELL and Green Mark Certifications. We believe this marks an important milestone in the real estate sector and look forward to working with developers like CLD to create healthier, more resilient spaces for people to live, work and play in.”
Elaine Lam, Head of Global Corporate Banking, OCBC, said, “We are glad to partner CLD on this ground-breaking sustainability-linked loan tied to both WELL and Green Mark certifications. With some 90% of our time being spent in buildings, it is critical that buildings are built to standards that are not only good for the environment but also beneficial to human health. This loan exemplifies CLD’s and OCBC’s joint commitment to investing in a healthier, more sustainable world that prioritises the well-being of both people and the environment; it also reflects the holistic approach that we take to supporting our clients’ ESG ambitions.”
As businesses increasingly prioritise reducing their environmental impact and enhancing stakeholder well-being, these financial solutions signify a shift toward a future where environmental and social factors are seamlessly integrated into economic growth.
Artist’s impression: Geneo’s centerpiece is a naturally ventilated event plaza, featuring lush greenery and Singapore’s tallest mass engineered timber canopy structure at 27 metres in height.
Release ID: 89145347
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