DBS provides Malaysia's largest public sector pension fund, KWAP, its first green loan to expand sustainability footprint
Singapore, Regional.28 Nov 2023
The green loan refinances a Grade A green office tower with the highest rating for building energy efficiency in Australia
Singapore, Regional, 28 Nov 2023 - DBS has provided an AUD207 million (SGD180 million) green loan to Retirement Fund (Incorporated) (KWAP) to refinance a Grade A green office tower in Australia. This is the first green loan that KWAP – the largest public sector pension fund in Malaysia – has secured.
Wholly owned by KWAP, the 17-level office building located in Collins Street, Melbourne, holds a 6 Star NABERS energy rating (without Green Power) – the highest rating for building energy efficiency in Australia. This is in recognition of its many sustainability attributes, including rooftop solar panels and a trigeneration system that recycles waste heat from onsite power generation for heating and cooling purposes.
DBS provided the green loan for the building in accordance with its Sustainable and Transition Finance Framework and Taxonomy, which was launched in 2020 to help clients transition towards more sustainable business models. The loan provisions are aligned with internationally-recognised Green Loan Principles.
Niraj Mittal, Country Head of DBS Australia, said: “The built environment sector is ripe for decarbonisation as it accounts for a quarter of all greenhouse gas emissions. The industry recognises this as we have observed growing demand for green finance products from a wide spectrum of organisations and not just real estate companies. We have been financing green infrastructure and properties across Asia Pacific to support the region’s transition towards a low carbon future. In Australia, we are very active in green and sustainability-linked financing to support our strategic clients’ sustainability goals. DBS is proud to be partnering with KWAP as a pioneer in sustainability."
Hazman Hilmi Sallahuddin, Chief Investment Officer of KWAP, said: “Building a portfolio that generates long-term returns for our stakeholders has always been KWAP’s top priority as part of our value creation journey. It is an even greater achievement if it can be accomplished in a way that supports our effort to continue spearheading the ESG agenda. We are thrilled to work with DBS as we progress on this path towards making environmentally and sustainably conscious decisions for our portfolio.”
TrustCapital Advisors Investment Management is KWAP's investment manager for this green loan.
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About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is 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 “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. 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 and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 15 consecutive years from 2009 to 2023.
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, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting social enterprises: businesses with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping communities with future-ready skills and building food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.
About Kumpulan Wang Persaraan (Diperbadankan)
Kumpulan Wang Persaraan (Diperbadankan) [KWAP] or the Retirement Fund (Incorporated) was established on 1st March 2007 under the Retirement Fund Act 2007 (Act 662) replacing the repealed Pensions Trust Fund Act 1991 (Act 454).
KWAP manages contributions from the federal government and relevant agencies made into the Retirement Fund [Fund] to obtain optimum returns on its investments through sound management and investment of the Fund in equity, fixed-income securities, money market instruments, and other forms of investments as permitted under the Retirement Fund Act 2007 (Act 662). The Fund shall be applied towards assisting the Federal Government in financing its pension duties. In 2015, KWAP was officially appointed as an agent of the Federal Government for the purpose of pension payment, gratuity, or other benefits granted under any written law from the Consolidated Fund as agreed between the Federal Government and KWAP.
Visit www.kwap.gov.my for more information.
Wholly owned by KWAP, the 17-level office building located in Collins Street, Melbourne, holds a 6 Star NABERS energy rating (without Green Power) – the highest rating for building energy efficiency in Australia. This is in recognition of its many sustainability attributes, including rooftop solar panels and a trigeneration system that recycles waste heat from onsite power generation for heating and cooling purposes.
DBS provided the green loan for the building in accordance with its Sustainable and Transition Finance Framework and Taxonomy, which was launched in 2020 to help clients transition towards more sustainable business models. The loan provisions are aligned with internationally-recognised Green Loan Principles.
Niraj Mittal, Country Head of DBS Australia, said: “The built environment sector is ripe for decarbonisation as it accounts for a quarter of all greenhouse gas emissions. The industry recognises this as we have observed growing demand for green finance products from a wide spectrum of organisations and not just real estate companies. We have been financing green infrastructure and properties across Asia Pacific to support the region’s transition towards a low carbon future. In Australia, we are very active in green and sustainability-linked financing to support our strategic clients’ sustainability goals. DBS is proud to be partnering with KWAP as a pioneer in sustainability."
Hazman Hilmi Sallahuddin, Chief Investment Officer of KWAP, said: “Building a portfolio that generates long-term returns for our stakeholders has always been KWAP’s top priority as part of our value creation journey. It is an even greater achievement if it can be accomplished in a way that supports our effort to continue spearheading the ESG agenda. We are thrilled to work with DBS as we progress on this path towards making environmentally and sustainably conscious decisions for our portfolio.”
TrustCapital Advisors Investment Management is KWAP's investment manager for this green loan.
[END]
About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is 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 “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. 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 and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia” award by Global Finance for 15 consecutive years from 2009 to 2023.
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, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting social enterprises: businesses with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping communities with future-ready skills and building food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.
About Kumpulan Wang Persaraan (Diperbadankan)
Kumpulan Wang Persaraan (Diperbadankan) [KWAP] or the Retirement Fund (Incorporated) was established on 1st March 2007 under the Retirement Fund Act 2007 (Act 662) replacing the repealed Pensions Trust Fund Act 1991 (Act 454).
KWAP manages contributions from the federal government and relevant agencies made into the Retirement Fund [Fund] to obtain optimum returns on its investments through sound management and investment of the Fund in equity, fixed-income securities, money market instruments, and other forms of investments as permitted under the Retirement Fund Act 2007 (Act 662). The Fund shall be applied towards assisting the Federal Government in financing its pension duties. In 2015, KWAP was officially appointed as an agent of the Federal Government for the purpose of pension payment, gratuity, or other benefits granted under any written law from the Consolidated Fund as agreed between the Federal Government and KWAP.
Visit www.kwap.gov.my for more information.
