• Published on 11 January 2024
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SP Group secures $487.9M green loan for Labrador Tower development

SP Group (SP) announced that it has secured a SGD 650 million ($487.9 million) committed green loan facility from Bank of China, DBS Bank, Maybank Singapore, OCBC and UOB in December 2023.

This is SP’s largest green loan secured and will be aligned to SP’s updated Green Financing Framework. The loan will be used to finance and/or refinance loans relating to the construction, development, ongoing operations and maintenance of SP’s upcoming Labrador Tower development.

Labrador Tower is a Building and Construction Authority (BCA) certified Green Mark Super Low Energy (GM SLE) building that comprises a Grade A office block and retail space. The development incorporates SP’s suite of digital and sustainable energy solutions, including Green Energy Technology (GET™) that uses artificial intelligence and internet of things (IOT) to manage and reduce energy consumption, sustainable cooling and thermal energy storage, solar panels and EV charging facilities. When it is completed in mid-2024, it would be one of the first commercial buildings in Singapore to operate under the GM SLE category and is expected to achieve at least 40% energy savings based on BCA’s prevailing building code. Labrador Tower is located above another sustainable energy infrastructure developed by SP Group – a large-scale underground 230kV electricity substation that optimises land space in Singapore.

As part of SP’s ongoing commitment towards a low-carbon future, the company also refined its Green Financing Framework to reflect SP’s latest sustainability roadmap. The enhanced framework will deepen the integration of SP’s sustainability roadmap into its financing strategy and provide greater visibility of how SP aims to create positive environmental impact and empower a low carbon, smart energy future for Singapore and the region.

The framework was found to be credible and aligned to the latest relevant international principles and guidelines by DNV Business Assurance Singapore (DNV), which was appointed to provide a second party opinion on the updated framework. One of the revisions include tightening of the eligibility criteria for green buildings to minimally achieve the BCA Green Mark GoldPlus Certification, or equivalent standards, to be considered for green financing.

Loong Hui Chee, chief financial officer of SP Group, said: “Green financing is integral to SP Group’s strategy in empowering a clean energy future for Singapore and across our key markets. We are pleased to secure our largest green loan to date for our upcoming super low-energy Labrador Tower development through the partnership of our environmentally-focused financers –Bank of China, DBS Bank, Maybank Singapore, OCBC and UOB. Advanced under our Green Financing Framework, this strengthens the sustainability credentials of Labrador Tower and positions the development as one of the most energy-efficient commercial buildings in Singapore and across the region.”

Re-disseminated by The Asian Banker