The three green loans mark CapitaLand’s first foray in sustainable finance in India. Proceeds from the green loans will be used to finance the development of its green-certified International Tech Parks in Chennai, Gurgaon and Pune.
Vinamra Srivastava, CEO, Business Parks, CapitaLand India, said: “CapitaLand places sustainability at the core of what we do. The securing of the first green loans in India demonstrates CapitaLand’s commitment to grow our business in a responsible manner as we create long-term value for our stakeholders. CapitaLand’s aim to develop greener buildings while continuing to contribute to the environmental and social well-being of our communities.”
The four-and-a-half-year Rs 625 crore (S$118.8 million1) and three-year Rs 425 crore (S$80.8 million1) green loans provided by DBS will be used to finance the development of Phase 1 of International Tech Park Chennai, Radial Road and Phase 1 of International Tech Park Gurgaon respectively. The four-year Rs 650 crore (S$123.5 million1) green loan provided by HSBC India will be used to finance the development of International Tech Park Pune, Kharadi.
Chew Chong Lim, Managing Director & Global Head of Real Estate, Institutional Banking, DBS, said: “Sustainable financing in the real estate sector will continue to gain prominence in Asia, and DBS looks forward to collaborating with our customers in developing responsible financing solutions to meet the sustainability challenges ahead of us.”
With the addition of the three green loans in India, CapitaLand Group including its business units and real estate investment trusts have raised a total of more than S$3.6 billion through sustainable finance thus far.
Hitendra Dave, Head, Global Banking & Markets, HSBC India, said: “We are delighted to have supported CapitaLand on multiple landmark green loan transactions across their portfolio in Singapore and India. As we enter a pivotal decade of change, we look forward to supporting CapitaLand as their banking partner in building a healthier, more resilient, and more sustainable future.”
CapitaLand Group aims to green its entire global portfolio by 2030. CapitaLand Group targets to secure S$6 billion through sustainable finance such as sustainability-linked loans, green loans and green bonds. This is triple the S$2 billion raised to date through sustainable finance.
In India, CapitaLand has a strong presence with a portfolio of over 20 business and IT parks, industrial, lodging and logistics properties across seven cities – Bangalore, Chennai, Goa, Gurgaon, Hyderabad, Mumbai and Pune.
The Group has adopted various measures to reduce its carbon footprint. The initiatives include the use of onsite and offsite solar energy, energy efficient glass facade, green construction materials, energy efficient high-performance chillers, 100% LED light fixtures, and demand-controlled ventilation.
The Group has also initiated measures to ensure zero wastage and reduce single-use plastic usage across its business parks. As part of its digital initiatives, CapitaLand has also set up an Internet of Things-driven intelligent building platform that improves energy efficiency in its properties through real-time data analysis and performance monitoring.
Headquartered and listed in Singapore, CapitaLan owns and manages a global portfolio worth about S$133.3 billion as at 30 September 2020. CapitaLand’s portfolio spans across diversified real estate classes which includes commercial, retail; business park, industrial and logistics; integrated development, urban development; as well as lodging and residential.
CapitaLand has one of the largest real estate investment management businesses globally. It manages six listed real estate investment trusts (REITs) and business trusts as well as over 20 private funds.