One Raffles Quay (ORQ) has successfully obtained a sustainability-linked loan of SGD 1.13 billion, with DBS serving as the anchor lender and sole sustainability coordinator. The financing will aid in enhancements to the Green Mark Platinum-certified office complex, which is co-owned by Hongkong Land, Keppel REIT, and Suntec REIT.
DBS is contributing SGD 710 million, while ICBC, BOC, and OCBC are jointly providing the remaining SGD 420 million under a five-year agreement. The funds will be allocated for refinancing an existing loan and addressing general working capital needs, including asset enhancement projects.
The sustainability-linked loan (SLL) is focused on significant reductions in energy consumption and water usage, linking financial incentives to environmental performance. The transaction emphasizes a rising shift in commercial real estate financing towards driving environmental impact.
"Buildings account for about 20% of carbon emissions in Singapore," stated the release. This underscores the strategic importance of driving changes at the asset level to accelerate decarbonization in the real estate sector.
Syahzan Kudus, CEO of Raffles Quay Asset Management which manages ORQ, noted, "This landmark sustainability-linked loan underscores our commitment to advancing sustainable real estate practices in Singapore’s prime commercial sector." This commitment is shared by Chew Chong Lim, Group Head of Real Estate at DBS, who said, “This significant transaction highlights the continued momentum for sustainable finance in Asia.”
Located in Singapore's Central Business District, ORQ comprises two towers offering 1.3 million square feet of office space. The building hosts various major tenants including Deutsche Bank, EY, and ByteDance.
The initiative is a part of a broader strategy to enhance environmental stewardship through targeted sustainability goals.