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Singapore, 30 October 2024 – 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.

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."