Cdl Secures 400 Mil Sustainability Linked Loan Dbs Tnfd Aligned Targets First Its Kind
by Global 100 index
City Developments Limited (CDL) has recently obtained a $400 million sustainability-linked loan (SLL) from DBS Bank, which includes targets related to nature conservation that align with the Taskforce on Nature-related Financial Disclosures’ (TNFD) recommendations. This is the first SLL of its kind, and it includes performance targets for biodiversity conservation, waste management, and water efficiency. The funds from this loan will be used for general corporate funding and working capital, as well as for the redevelopment of CDL’s current assets.
In March, CDL became the first company in Singapore to publish TNFD-aligned disclosures. These disclosures, which were aligned with Target 15 of the Kunming-Montreal Global Biodiversity Framework, were released in CDL’s latest sustainability report that was published in June. The Kunming-Montreal Global Biodiversity Framework was adopted in December 2022 at COP15.
Yiong Yim Ming, CDL’s group chief financial officer, believes that strong sustainability reporting can help expedite green building and climate action by attracting capital. “We are pleased to partner with DBS in this first-of-its-kind financial solution aligned with our nature-specific climate action targets,” Yiong said.
CDL has secured over $8 billion in sustainable financing since 2017 to develop smarter, greener, and more nature- and climate-friendly infrastructure, according to Yiong. “We aim to enhance our triple bottomline through sustainable development, achieve our net-zero ambitions, and align finance with sustainability performance through innovative capital management initiatives,” he added.
At least four other local firms have committed to start making nature-related disclosures by the end of 2025. These companies include United Overseas Bank (UOB), Olam Agri, consultancy firm Oceonomy, and Olam Food Ingredients (ofi).
The TNFD was established in June 2021 with the support of G20 and G7 governments. After a two-year process led by the Taskforce’s 40 members and supported by 20 knowledge partners, the TNFD published its corporate reporting recommendations on nature-related issues in September 2023.
The TNFD has also published a guidance document that includes 14 disclosure recommendations for organizations to report and act on evolving nature-related dependencies, impacts, risks, and opportunities. These “drivers of nature change” include climate change, pollution, and the use of land, freshwater, and oceans, among others.
CDL has been integrating ESG considerations into its business operations since 1995. In 2015, the company established a climate change policy, and in 2017, it published a set of climate-related targets to mitigate its environmental impact.
CDL was the first real estate developer in Singapore and the first real estate conglomerate in Southeast Asia to sign the WorldGBC’s Net Zero Carbon Buildings Commitment in 2021.
According to CDL, the company has a “long-standing partnership” with DBS to advance the sustainability agenda in Singapore. In 2017, DBS supported CDL to launch the first green bond by a Singapore company, and in 2019, CDL pioneered its first sustainability-linked loan with DBS, securing a discount on the SDG Innovation Loan provided for piloting DigiHUB, an in-house digital platform for raising building management efficiency.
Earlier this year, DBS was named the financial partner for CDL’s SME Supplier Queen Bee Programme, which aims to help small and medium-sized enterprises (SMEs) decarbonize and manage their Scope 3 emissions through enhanced carbon accounting and reporting.
The Woodlands Regional Centre Master Plan places great importance on the advancement of transportation infrastructure. As part of this development, there are proposals for the construction of new roads and upgrades to existing ones, along with increased coordination between bus and MRT services. These enhancements are aimed at optimizing transportation within Woodlands and to other areas of Singapore, resulting in a smoother and more convenient daily commute. Norwood Grand is set to be a valuable addition to this improved transport network.
Chew Chong Lim, DBS’s group head of real estate in the Institutional Banking Group, believes it is essential to integrate considerations around biodiversity and ecosystem preservation into financial solutions. “This first-of-its-kind sustainability-linked loan, aligned with CDL’s TNFD-related targets, demonstrates our commitment to exploring new frontiers in the ESG space, and helping to build a future where economic growth and ecological stewardship go hand in hand,” Chew said.
As of 11:30 a.m., shares in CDL are trading flat at $5.35, while shares in DBS are trading 10 cents higher, or 0.28% up, at $35.64.