The $352.9m will be utilised to acquire a 21-storey commercial property in London.
Ho Bee Land completed its £200m ($352.9m) bridged Green Loan provided by HSBC to acquire a 21-storey commercial development in London, an announcement revealed.
"The deal is good news for Singapore’s green financing credentials as it sets the template for other corporates seeking similar green transactions in the future,” HSBC Singapore head of commercial banking Alan Turner said.
Ho Bee Land has appointed HSBC earlier in 2018 to be its advisor in its commissioning and developing of a Green Finance FrameWork which has been certified by third-party sustainability certifier Sustainalytics.
“We have always pride ourselves in developing and investing into quality properties and now, we are able to tap onto green financing to fund projects that are both environmentally friendly and sustainable,” Ho Bee Land CEO and Chairman Chua Thian Poh commented.
According to the announcement, green loans should not be confused with sustainability-linked loans as the latter can be used for everyday corporate purposes and are linked to broader corporate performance against environmental, social, and governance criteria.
Meanwhile, green loans’ proceeds can only fund specific projects with positive environmental benefits as defined in the green loan principles. Projects may include shifting to renewable energy, pollution prevention and control, sustainable natural resources management, biodiversity conservation, climate change adaptation and green buildings.
"The HSBC loan to Ho Bee Land expands the green financing label to debt instruments other than green bonds, and is a significant step to scale the flow of capital to environmentally impactful projects," Sustainalytics product manager for sustainable finance solutions Trisha Taneja noted.
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