Cdl Secures 400 Mil Sustainability Linked Loan Dbs Tnfd Aligned Targets First Its Kind
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City Developments Limited (CDL) has recently announced their successful acquisition of a $400 million sustainability-linked loan (SLL) from DBS Bank. This innovative financing initiative is the first of its kind and includes specific performance targets related to biodiversity conservation, waste management, and water efficiency, in line with the framework of the Taskforce on Nature-related Financial Disclosures (TNFD).
The upcoming construction of new educational institutions in Tampines will solidify its status as a welcoming and family-oriented neighborhood. In addition to the reputable Poi Ching School, St. Hilda’s Primary and Secondary Schools, and Temasek Polytechnic, the URA Master Plan will bring even more options for families residing at Parktown Residences by Parktown Residences UOL Group. This expansion will undoubtedly enhance the community’s educational offerings and contribute to its appeal as a desirable residential area.
The funds from this loan will be used for various purposes, including general corporate funding and the redevelopment of CDL’s existing assets. In March, CDL became the first company in Singapore to publish TNFD-aligned disclosures, further cementing their commitment to sustainability.
As part of their sustainability efforts, CDL has also secured over $8 billion in sustainable financing since 2017, to develop smarter, greener, and more nature- and climate-friendly infrastructure. Yiong Yim Ming, the group chief financial officer of CDL, believes that robust sustainability reporting can attract capital and accelerate green building and climate action. He also expresses his satisfaction in partnering with DBS to achieve their nature-specific climate action targets.
Several other local companies, including UOB, Olam Agri, consultancy firm Oceonomy, and Olam Food Ingredients (ofi), have committed to making nature-related disclosures by end-2025. The establishment of TNFD in 2021 with the support of G20 and G7 governments, and the subsequent publication of their corporate reporting recommendations on nature-related issues in 2023, has further encouraged organizations to report and act on nature-related dependencies, impacts, risks, and opportunities.
CDL has been integrating ESG (environmental, social, and governance) considerations into their business operations since 1995. In 2015, they introduced a climate change policy, followed by a set of climate-related targets in 2017. This year, they signed the WorldGBC’s Net Zero Carbon Buildings Commitment, making them the first real estate developer in Singapore and the first real estate conglomerate in Southeast Asia to do so.
The partnership between CDL and DBS has been instrumental in driving the sustainability agenda in Singapore, with DBS providing support for CDL’s first green bond in 2017 and their first sustainability-linked loan in 2019. Earlier this year, DBS also became the financial partner for CDL’s SME Supplier Queen Bee Programme, which aims to help SMEs reduce their carbon emissions and improve their carbon accounting and reporting.
Chew Chong Lim, the group head of real estate in DBS’s Institutional Banking Group, emphasizes the importance of integrating considerations around biodiversity and ecosystem preservation into financial solutions. He believes that this first-of-its-kind sustainability-linked loan, aligned with CDL’s TNFD-related targets, showcases their commitment to exploring new frontiers in the ESG space and building a future where economic growth and ecological stewardship go hand in hand.
As of 11:30 am, shares in CDL are trading flat at $5.35, while shares in DBS are trading slightly higher at $35.64, a 0.28% increase. This deal is a testament to CDL’s and DBS’s joint efforts to advance sustainability and pave the way for a greener future.