DBS reinforces commitment in sustainable finance with Asia’s first real estate sustainability-linked loan
Singapore, 04 Oct 2018 - DBS Bank reinforces its commitment to grow its sustainable financing business by launching Asia’s first real estate sustainability-linked loan. A collaboration between DBS Bank and CapitaLand Limited (“CapitaLand”), the latest deal pegs the interest rate of the developer’s five-year facility of SGD300 million to a series of environmental, social and governance (“ESG”) performance metrics.
Chew Chong Lim, Managing Director and Global Head of Real Estate at Institutional Banking Group, DBS Bank, said, “Sustainable finance has been driven by growing recognition that sustainability practices bode well for the business, as well as the wider environment and society. Fulfilling ESG ambition is also being shifted up the scale of importance among corporates, and DBS is working alongside our clients to develop solutions that can help grow their business while positioning them for a more sustainable future.”
Andrew Lim, Group Chief Financial Officer for CapitaLand Group said, “Dovetailing CapitaLand’s ESG efforts with our cost of funding further demonstrates our commitment to embed sustainability into our business in the long run and is core to CapitaLand’s role as a responsible real estate company. With growing public expectations and deeper focus on sustainability, embracing sustainability is not only good for our shared communities, but also beneficial for business.”
How sustainability loans benefit corporates
Sustainability-linked loans provide a financial incentive to companies keen to improve their ESG performance. These loans are structured on the premise that ESG performance is one of the key driving factors of a company’s financial performance. For this facility, the ESG performance of CapitaLand is evaluated based on RobecoSAM Corporate Sustainability Assessment (“CSA”), which is conducted annually. If the performance targets are met, the interest rate for part of the loan will be reduced, bringing down the company’s cost of debt.
DBS’ commitment towards sustainability
DBS recognises its role in promoting sustainable development of corporates and the wider economy. In recognition of its efforts, DBS is the first bank in Southeast Asia and one of five Singapore-listed companies to be included in the Dow Jones Sustainability Index (DJSI) Asia Pacific
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Last month, DBS set up a USD100m Women’s Livelihood Bond Program, which will comprise a series of bond issuances targeted to positively impact one million women across Asia while providing financial returns to investors. The fund in turn will help support high-impact enterprises in South and Southeast Asia working in areas of financial inclusion, access to clean energy, and sustainable agriculture.
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The DJSI Asia Pacific Index is made up of constituents which are Asia Pacific’s top sustainability leaders. Their ESG performance represents the top 20% of the 600 largest companies in the Asia-Pacific developed region .
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About DBS
DBS is a leading financial services group in Asia, with over 280 branches across 18 markets. Headquartered and listed in Singapore, DBS has a growing presence in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “
Best Bank in the World
” by Global Finance. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “
World’s Best Digital Bank
” by Euromoney. In addition, DBS has been accorded the “
Safest Bank in Asia
” award by Global Finance for ten consecutive years from 2009 to 2018.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, and positively impacting communities through supporting social enterprises, as it banks the Asian way. It has also established a SGD 50 million foundation to strengthen its corporate social responsibility efforts in Singapore and across Asia.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. The bank acknowledges the passion, commitment and can-do spirit in all of our 26,000 staff, representing over 40 nationalities. For more information, please visit
www.dbs.com
.
DBS Bank Ltd | 12 Marina Boulevard, DBS Asia Central @ Marina Bay Financial Centre Tower 3,
Singapore 018982 | Co. Reg. No. 196800306E
Tel: 65.6878 8888 | www.dbs.com
