GuocoLand through its indirect subsidiaries, MTG Apartments and MTG Retail, has secured a S$730 million  (US$513 million) green club loan from OCBC Bank, DBS Bank and ICBC Singapore for the construction of a new luxury residential/commercial development at Tan Quee Lan Street.

The development is a joint venture between GuocoLand and two subsidiaries of Hong Leong Holdings – Intrepid Investments and Hong Realty (Private). The green loan is GuocoLand’s first, and the industry’s largest, for a development project in Singapore to date. It is also ICBC Singapore’s first green loan in the city.

GuocoLand, together with OCBC Bank acting as the sole green financing advisor, developed a green loan framework that provides guidance for the evaluation of the new residential/commercial development’s eligibility as a green project based on its sustainability objectives and the management of the loan proceeds.

Proceeds from the loan will go towards financing the project, including the efforts in sustainable development, water and energy conservation, and adoption of immersive urban greenery and landscaping.

The green loan framework has been structured in accordance with the green loan principles issued in 2018 by the Loan Market Association and the Asia-Pacific Loan Market Association. DBS Bank and OCBC Bank are joint green co-ordinators and, together with ICBC Singapore, are mandated lead arrangers.

The new 30-storey residential/commercial development, which will be located above the Bugis mass rapid transit interchange station, will have two residential towers with more than 500 units of luxury apartments and a retail podium with food and beverage establishments open to the public.

The development is expected to meet the criteria to receive Green Mark GoldPLUS certification by the Building and Construction Authority.