The Singapore-based property developer has secured its first three green loans in India, from DBS and HSBC, totaling INR 17 billion ($230 million).
CapitaLand’s first foray into sustainable finance in India will be used to finance the development of its green-certified International Tech Parks in Chennai, Gurgaon and Pune, it announced in a statement on Wednesday.
The four-and-a-half-year INR 6.25 billion ($84 million) and three-year INR4.25 billion ($57 million) green loans provided by DBS will be used to finance the development of Phase 1 of International Tech Park Chennai, Radial Road, and Phase 1 of International Tech Park Gurgaon respectively. The four-year INR6.5 billion ($87 million) green loan provided by HSBC India will be used to finance the development of International Tech Park Pune, Kharadi.
The securing of the first green loans in India demonstrates CapitaLand’s commitment to grow our business in a responsible manner as we create long-term value for our stakeholders, Vinamra Srivastava, CEO, Business Parks, CapitaLand India, said in the announcement.
DBS head of institutional banking Tan Su Shan said that India is a promising market with ample opportunities to go green.
We see immense potential for growth in Asia’s sustainable financing market as companies look to further their sustainability agenda through responsible financing practices. 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, Tan said in a separate announcement.
CapitaLand owns and manages a global portfolio worth about S$133.3 billion ($99.13 billion) as at 30 September 2020. The company has a strong presence in India, with a portfolio of over 20 business and IT parks, industrial, lodging and logistics properties across seven cities – Bangalore, Chennai, Goa, Gurgaon, Hyderabad, Mumbai and Pune.