Norton Rose Fulbright advises Frasers Property on Singapore’s first BCA Green Mark Loan

Global law firm Norton Rose Fulbright’s Singapore team has advised Frasers Property Limited on a A$750 million (more than US$500 million) five-year term loan facilities, comprising of a A$500 million green loan and a A$250 million term loan. The A$500 million green loan is the first in Singapore with a pricing structure link to the BCA Green Mark, which is a rating system administered by the Building and Construction Authority in Singapore to evaluate a building’s environmental impact and performance.

The proceeds from the green loan tranche will be used to refinance existing loans in relation to two Singapore properties - Alexandra Point and 51 Cuppage Road. The A$250 million tranche will be used for general corporate and working capital.

The BCA Green Mark is a rating system administered by the Building and Construction Authority in Singapore and is used to evaluate buildings for their environmental impact and performance. In order to incentivise sustainable practices, the green loan tranche adopts a reducing pricing structure if the properties maintain their green standards. The facility follows the APLMA Green Loan Principles first established in March 2018.

The team on the deal was led by Singapore partner Yu-En Ong, who was assisted by Singapore associates Zhenning Kong and Kai-Ye Ang.

Yu-En Ong comments:

“We are pleased to have been able to assist Frasers on its fifth green loan in the region, representing the momentum in sustainable financing. Singapore continues to implement initiatives in pursuit of a sustainable future. When factoring in the reinvigorated drive in corporate social responsibility and socially responsible investment assets, we expect the demand for green financing to continue rising for banks and corporates, especially for those that deal in agriculture, water and waste management and renewable energy.”

Last year, Norton Rose Fulbright advised on a landmark INR 2.5 billion (more than US$35 million) dual tranche unsecured wrapped and rated bond issuance by Sindicatum Renewable Energy Company Pte Ltd. The deal marked the first green bond issued in Indian Rupees by a Singaporean corporate, and also the first international green bond issued in accordance with both ASEAN Green Bond Standards and ICMA’s Green Bond Principles