Singaporean banks continue tapping into the growing sustainable finance market with the latest $44 million loans secured by Burmese developer Shwe Taung Group – the first in the country.
Sole green loan advisor OCBC provided nearly $30 million with the remaining secured from UOB through the two Singaporean lenders’ Yangon branches. The $44 million loans will be used for a mixed project that includes offices, a shopping mall and the Pan Pacific Hotel.
Green features in the project include energy-efficient systems that lower consumption such as double-glazed glass windows rooftop solar panels. The features are expected to collectively reduce energy consumption by 15-20 percent, according to a statement.
The loan brings OCBC slightly closer to its target of constructing a S$10 billion ($7.2 billion) sustainable finance portfolio by 2022. The bank has been on a global green lending spree issuing loans for projects ranging from property development in Hong Kong to hybrid bus fleets in Australia.
Green financing is gathering momentum across the region as companies embrace the sustainability agenda and find support in driving climate change within their businesses and industries, said Linus Goh, head of global commercial banking at OCBC which has over 60 years of history in Myanmar.
We believe that this landmark transaction signals an important shift towards sustainability in the country at this crucial stage of economic development, and we hope it will spur other businesses to join us in this journey.