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OCBC Bank extends $148 mil green loan facility to Tong Eng using BCA's new building energy efficiency assessment tool

By Felicia Tan

/ The Edge Singapore |

October 27, 2021 11:32 PM SGT

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SINGAPORE (EDGEPROP) - OCBC Bank has issued its first green loan that leverages the Building Energy Efficiency Assessment (BEEA).

Read also: Sustainability movement and real estate: Fad or here to stay?

The BEEA is the latest tool launched by the Building and Construction Authority of Singapore (BCA) to simplify the transition process to sustainability easier for building owners, developers and SMEs.

The bank announced on Oct 26 that it has extended a $148 million green loan facility leveraging the tool to Fairview Development. The latter is a unit of one of Singapore’s leading private developers, Tong Eng Group.

The tool helps predict the energy performance of buildings, and makes the process much simpler and more convenient. Through the tool, properties can now be assessed within minutes, unlike the existing process where green building certifications and obtaining green loans could take several weeks.

With the tool, projects that are deemed to be able to achieve a level of energy efficiency comparable to the certification standard of a BCA Green Mark 2021 GoldPLUS building, will be eligible to obtain a green loan from OCBC Bank.

The tool also enables property developers and others in the value chain to gain access to green loans more easily. This will support them in the shift towards green developments and construction.

The $148 million green loan was issued under Tong Eng Group’s green loan framework, which was developed in 2020 in accordance with Green Loan Principles issued by the Loan Market Associations.

The framework has been expanded to include projects that are assessed by BEEA to have energy performance comparable to that of a BCA Green Mark 2021 GoldPLUS certified building.

The proceeds of the loan will be used to finance the development of its upcoming residential project, Belgravia Ace.

Belgravia Ace will be outfitted with several green features including the optimisation of window-to-wall ratio and the use of low emission glazing that reduces UV and infra-red rays from the sun. The development will also use air-conditioning systems and home appliances with the highest energy efficiency rating.

In addition, electric vehicle charging points will be installed within the development.

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