Darren.Woon

Green financing, where the funds can only be used to finance or re-finance green projects that deliver environmental benefits, is becoming increasingly popular in Singapore, according to JD Supra.

The Building and Construction Authority of Singapore’s (BCA) goal is to ensure that 80% of the buildings in Singapore are certified “green” by 2030, in the latest effort to curb climate change.

The Loan Markets Association and Asia Pacific Loan Market Association released the Green Loan Principles (GLP) in March 2018. It includes a list of eligibility and guides what a green loan should finance.

From a corporate borrowers’ perspective, reducing carbon footprints in order to secure funding is an attractive seller. Not only would it enhance their reputation, as “green” culture grows more prevalent, but it would align business decisions made by large corporations with environmental and sustainability goals.

From a banks’ perspective, providing green financial solutions is a great opportunity to make a more positive impact in the global effort towards mitigating climate change.

A $1.2 billion green loan was granted to Frasers Property Limited to develop a three-story retail structure in the Central Business District of Singapore. Its distinguishing feature is that it uses recycled water for irrigation purposes.

Read the full story here.

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