CapitaLand secures first three green loans in India totalling INR17 billion
CapitaLand secures first three green loans in India totalling INR17 billion for its business park developments in Chennai, Gurgaon and Pune
Singapore, 18 November 2020 – CapitaLand has secured its first three green loans in India, totalling INR17 billion (S$323 million1) from DBS Bank India Limited (DBS) and the Hongkong and Shanghai Banking Corporation Limited India (HSBC India). The three green loans mark CapitaLand’s first foray into sustainable finance in India. Proceeds from the green loans will be used to finance the development of its green-certified International Tech Parks in Chennai, Gurgaon and Pune.
Mr Vinamra Srivastava, CEO, Business Parks, CapitaLand India, said:
“CapitaLand places sustainability at the core of what we do. We integrate sustainability into every stage of our real estate life cycle, from investment to design, development and operations, garnering international recognition for our efforts in greening our business parks. The securing of the first green loans in India demonstrates CapitaLand’s commitment to grow our business in a responsible manner as we create long-term value for our stakeholders. We are glad to work with like-minded partners such as DBS and HSBC who support CapitaLand’s aim to develop greener buildings while continuing to contribute to the environmental and social well-being of our communities.”
Mr Chew Chong Lim, Managing Director & Global Head of Real Estate, Institutional Banking, DBS, said: “DBS and CapitaLand have built a meaningful relationship over the years and in more recent times deepened our collaboration in finding sustainable financing solutions for green developments. We are delighted to partner CapitaLand on two green loans, which are also the first by any Singapore-based lender in India. Sustainable financing in the real estate sector will continue to gain prominence in Asia, and DBS looks forward to collaborating with our customers in developing responsible financing solutions to meet the sustainability challenges ahead of us.”
Mr Hitendra Dave, Head, Global Banking & Markets, HSBC India, said: “We are delighted to have supported CapitaLand on multiple landmark green loan transactions across their portfolio in Singapore and India. As we enter a pivotal decade of change, we look forward to supporting CapitaLand as their banking partner in building a healthier, more resilient, and more sustainable future.”
As part of CapitaLand’s 2030 Sustainability Master Plan, the Group aims to green its entire global portfolio by 2030. CapitaLand Limited also targets to secure S$6 billion through sustainable finance such as sustainability-linked loans, green loans and green bonds. This is triple the S$2 billion raised to date through sustainable finance. With the addition of the three green loans in India, CapitaLand Group including its business units and real estate investment trusts have raised a total of more than S$3.6 billion through sustainable finance thus far.
In India, CapitaLand has a strong presence with a portfolio of over 20 business and IT parks, industrial, lodging and logistics properties across seven cities – Bangalore, Chennai, Goa, Gurgaon, Hyderabad, Mumbai and Pune. The Group is a key contributor to India’s IT industry development, having pioneered the renowned International Tech Park Bangalore in 1994. CapitaLand has deep expertise in India across the full real estate value chain - from owning, developing and managing properties to fund management through Ascendas India Trust and private funds.
In India, CapitaLand is a winner of the prestigious 6th Indian Green Building Council Green Champion Award for the category – ‘Developer leading the Green Building Movement in India (Commercial)’ in 2019. It has 28 green buildings2 within its properties in India.
The Group has adopted various measures to reduce its carbon footprint. The initiatives include the use of onsite and offsite solar energy, energy efficient glass facade, green construction materials, energy efficient high-performance chillers, 100% LED light fixtures, and demand-controlled ventilation. The Group has also initiated measures to ensure zero wastage and reduce single-use plastic usage across its business parks. As part of its digital initiatives, CapitaLand has also set up an Internet of Things-driven intelligent building platform that improves energy efficiency in its properties through real-time data analysis and performance monitoring.
Please refer to Annex for the features of International Tech Park Chennai, Radial Road; International Tech Park Gurgaon; and International Tech Park Pune, Kharadi.
Features of International Tech Park Chennai, Radial Road; International Tech Park Gurgaon; and International Tech Park Pune, Kharadi
International Tech Park Chennai, Radial Road
Located along Chennai’s IT corridor, International Tech Park Chennai, Radial Road (ITPC-Radial Road) has 4.6 million square feet of development potential for premium Grade A office space to cater to 45,000 professionals. The IT park’s first phase will comprise two buildings, offering a net leasable area of 1.25 million square feet for IT and IT-enabled services companies. The first and second blocks will be operational by 4Q 2022 and 2Q 2024 respectively. When fully developed, it will have amenities such as restaurants, food courts, fitness centre, clinic, childcare centre and event spaces.
ITPC-Radial Road has been pre-certified with a Platinum rating by the Indian Green Building Council. The IT park will implement sustainable measures including environmentally conscious construction, lush landscaping, water and energy-saving features, as well as waste management and recycling. It will also have sustainable and resilient design solutions with a focus on safety, health, wellness, and technology integration such as contactless features and app-based solutions among others.
International Tech Park Gurgaon
Located in the growth corridor of Gurgaon, International Tech Park Gurgaon (ITPG) is an 8 million square feet superior business space to be developed in phases. Phase 1 is operational, offering 1 million square feet to leading IT organisations.
Phase 2, currently under development, will offer 700,000 square feet of net leasable area and is targeted for completion in 1Q 2022. It has obtained a pre-certified Leadership in Energy and Environmental Design (LEED) Platinum rating by the U.S. Green Building Council.
ITPG has implemented a real-time monitoring system to ensure optimal energy and water consumption as well as deployed an efficient air filtration system.
International Tech Park Pune, Kharadi
Located in the prime eastern corridor of Pune, International Tech Park Pune, Kharadi (ITPP-Kharadi) is a 2.5 million square feet IT/IT Special Economic Zone park comprising two office blocks and an incubation block that provides companies with fully fitted office spaces for immediate occupancy. The first phase of development will offer 1.4 million square feet of premium office space and is estimated to be completed by 3Q 2021. ITPP-Kharadi is being developed under CapitaLand’s private fund, Ascendas India Growth Programme, which Singapore’s sovereign wealth fund GIC is a principal investor.
ITPP-Kharadi has registered for the U.S. Green Building Council’s LEED programme to achieve Gold certification and plans to pursue WELL Certification by the International WELL Building Institute (IBWI). The IT park’s sustainable features include an urban farm, rooftop solar panels to generate renewable energy, LED and motion sensor lighting and double-glazed facades for energy efficiency, water-saving fittings, rainwater recycling and organic waste converters.