Frasers Property entity secures refinancing for $1.08 bil green loan

Frasers Property Limited has drawn down a five-year green term loan club facility totalling $1.08 billion to refinance a loan for Frasers Tower due in September. The loan terms afford the company a lower margin on its green loan if the Tower maintains at least a Green Mark GoldPLUS certification status, issued by Singapore’s Building and Construction Authority (BCA). Participating banks include United Overseas Bank, DBS Bank, Industrial and Commercial Bank of China Limited (Singapore Branch), Oversea-Chinese Banking Corporation (OCBC), CIMB Bank Berhad (Singapore Branch), RHB Bank Berhad and ING Bank N.V. (Singapore Branch).

Frasers Tower, a 38-storey premium Grade-A office tower with an adjacent three-storey cascading retail podium, has already been accorded the highest attainable Green Mark Platinum rating. With its environmentally-friendly design and resource-efficient features, green cement, recycled concrete aggregates, double-glazed facade design, energy-efficient escalators and its building systems optimising water and energy efficiency and improving indoor air quality, it is one of six office properties managed by Frasers Property Singapore.

Further green features have been implemented at Frasers Tower, such as energy regenerative lifts and a ductless fan system to reduce overall power consumption, as well as motion sensor lighting controls for common toilets, car parks, lift turnstile systems and staircases to maximise energy savings. Automated office perimeter lighting further helps with daylight savings.

Loo Choo Leong, Group CFO of Frasers Property, indicated that the Group has secured more than $10 billion of green or sustainability-linked loans and bonds, attesting to their commitment to their decarbonisation journey. In February, the Group had secured a five-year A$340 million ($295.69 million) and US$75 million ($101.64 million) syndicated sustainability-linked loan for Frasers Property AHL Limited, with key feature of a price reduction structure that provides interest rate savings from the second year if its annual absolute greenhouse gas emissions targets are met.

Frasers Property, which is itself listed on the Singapore Exchange (SGX), has total assets of $40.1 billion as at March 31. It is also the sponsor of two S-REITs — Frasers Centrepoint Trust (FCT) and Frasers Logistics and Commercial Trust — and Frasers Hospitality Trust, a stapled trust. In July, FCT announced that it had partnered with OCBC for a $419 million green loan to refinance a maturing facility, and to finance asset enhancement initiatives, decarbonisation projects and other general corporate purposes.

Residents of Tengah Plantation EC will have access to amenities such as a swimming pool, gym, spa, and more. The development’s location near the Tengah Town Center means residents will also be able to enjoy the convenience of living near shops, restaurants, and other recreational facilities. In addition, the development has been designed to promote green living, with environmentally-friendly features such as energy-efficient lighting.

Tengah Plantation EC will be a great choice for those seeking a high-quality residential development with excellent amenities and facilities. With its close proximity to the town center, it is sure to become a popular choice with both locals and expats.

As at 10.51am, shares in Frasers Property are trading 1 cent lower, or 1.26% down, at 80 cents. This first drew down of the $1.08 billion green loan is yet another demonstration of the Group’s commitment to their sustainability journey.