DBS Bank issues maiden green loans in India worth Rs 1,050 crore to CapitaLand
DBS Bank on Wednesday said it has issued its first two green loans in India totalling Rs 1,050 crore to CapitaLand. DBS grows its sustainable financing footprint with maiden green loans in India totalling Rs 1,050 crore.
Both green loans are also the first to be issued in India by a Singapore bank, DBS Bank said in a release.
The lender issued a three-year Rs 425 crore (SGD 80.8 million) loan to refinance construction financing for the development of phase 1 of International Tech Park Gurgaon (ITPG) and other general corporate purposes related to the project, it added.
Another four-and-a-half-year Rs 625 crore (SGD 118.8 million) loan has been issued to finance construction costs for phase 1 of International Tech Park Chennai, Radial Road (ITPC-RR).
Located in Gurugram, ITPG is an 8 million square feet superior business space to be developed in phases.
Phase 1, offering 1 million square feet, is already operational, catering to leading IT organisations. Phase 2, currently under development, will offer 7,00,000 square feet of net leasable area and is targeted for completion in first quarter of 2022, the release said.
ITPG has obtained a pre-certified 'platinum' rating under the LEED (Leadership in Energy and Environmental Design) green building rating system administered by the US Green Building Council.
ITPC-RR, located in Chennai's IT corridor, has a 4.6 million square feet of development potential for premium grade A office space to cater to 45,000 professionals.
The IT park’s first phase will comprise two buildings, offering a net leasable area of 1.25 million square feet for IT and IT-enabled services companies.
The first and second blocks will be operational by fourth quarter of 2022 and second quarter of 2024, respectively.
ITPC-RR has obtained a pre-certified 'platinum rating' as assessed by the Indian Green Building Council.
"We see immense potential for growth in Asia's sustainable financing market as companies look to furthering their sustainability agenda through responsible financing practices," DBS Group Head of Institutional Banking Tan Su Shan said.
"In becoming the first Singapore bank to finance green loans in India, we are also establishing Singapore as a regional sustainable financing hub with the expertise and experience to forge meaningful partnerships for a more sustainable Asia," Shan added.
Since 2018, DBS has concluded over 100 sustainable financing deals worth about SGD 15 billion, with India being a promising market with ample opportunities to go green, the release said.
Niraj Mittal, Managing Director and Country Head- Institutional Banking Group, DBS Bank India said, "The country presents a significant opportunity in the sustainable financing space and we will continue to partner with high-impact businesses to propel development while contributing towards environmental resilience.
"Financing projects such as CapitaLand's Tech Parks in India enables us to deliver economic value in line with our responsible banking ethos," Mittal added.
The World Economic Forum estimates that there is a USD 2.5 trillion annual financing gap that stands in the way of the international community achieving United Nations Sustainable Development Goals, the bank said.
"The securing of our first green loans in India demonstrates CapitaLand's commitment to growing our business in a responsible manner as we create long-term value for our stakeholders," said Vinamra Srivastava, CEO, Business Parks, CapitaLand India.
CapitaLand Limited (CapitaLand) is one of Asia's largest diversified real estate groups, headquartered and listed in Singapore.
