City Developments takes out $400 million sustainability-linked loan from DBS

SINGAPORE - City Developments (CDL) has secured a $400 million sustainability-linked loan from DBS Bank to advance nature conservation and sustainable development in Singapore.

On June 25, both parties said the loan marks the first of its kind, with criteria guided by targets set by CDL in its adoption of the Taskforce on Nature-related Financial Disclosures (TNFD) disclosures.

The facility is designed to incentivise CDL’s ongoing efforts to achieve significant environmental, social, and governance (ESG) milestones, said CDL and DBS.

Its specific performance targets are related to biodiversity conservation, waste management and water efficiency, which were highlighted as all “crucial components” of the TNFD recommendations.

CDL intends to use proceeds from the loan for general corporate funding and working capital purposes, including the redevelopment of the group’s existing assets.

“We aim to enhance our triple bottom line through sustainable development, achieve our net-zero ambitions, and align finance with sustainability performance through innovative capital management initiatives,” said CDL group chief financial officer Yiong Yim Ming.

She noted that the group has secured more than $8 billion in sustainable financing since 2017 to “develop smarter, greener and more nature- and climate-friendly infrastructure”.

Mr Chew Chong Lim, group head of real estate for DBS’ Institutional Banking Group, said that the lender “is proud to work with CDL, one of the first Singapore companies to be on the list of TNFD adopters and the first in Singapore to publish TNFD-aligned disclosures”.

“As the importance of biodiversity and ecosystem preservation grows, it is essential that we integrate these considerations into our financial solutions,” he added.

Launched in September 2023, the TNFD framework is a set of global standards and guidelines designed to help businesses effectively integrate nature and biodiversity considerations into corporate decision-making.

The framework is therefore considered enabling greater transparency, accountability and more consistent measurement in nature-related financial disclosures. THE BUSINESS TIMES