Narrative
Full Description
Project narrative
On December 6, 2019, a syndicate including the Industrial and Commercial Bank of China, Singapore Branch (ICBC Singapore), Oversea-Chinese Banking Corporation Limited (OCBC Bank), and DBS Bank Ltd. agreed to syndicated loan facilities valued at SGD 730 million with MTG Apartments Pte. Ltd. and MTG Retail Pte. Ltd. for the construction of a new luxury residential and commercial development on Tan Quee Lan Street in Singapore. OCBC Bank was appointed as the green financing adviser. MTG Apartments Pte. Ltd. and MTG Retail Pte. Ltd are joint ventures of GuocoLand, a Singaporean property developer, and two subsidiaries of Hong Leong Holdings: Intrepid Investments and Hong Realty. Details of the loan facilities are unclear. The property will be a mixed-use development, designed to achieve the Green Mark Gold certification by Singapore's Building & Construction Authority; it will be a 30-story residential and commercial building, featuring two residential towers with over 500 units, alongside public retail space. The joint-venture groups won the tender to construct the building in September 2019, placing a SGD 800.2 million bid to receive the land tender from the Singaporean government. Proceeds from the loan will also help with "efforts in sustainable development, water and energy conservation, and the adoption of urban greenery and landscaping." {EdgeProp}
Staff comments
1. AidData is currently estimating each contribution by Chinese state-owned entities (SGD 243.33 million) by dividing the total amount of financing (SGD 730 million) by the number of known lenders (3). 2. This loan is considered to be a "green loan", defined by the World Bank as "a form of financing that enables borrowers to use the proceeds to exclusively fund projects that make a substantial contribution to an environmental objective." (Source: https://www.worldbank.org/en/news/feature/2021/10/04/what-you-need-to-know-about-green-loans)