Issued under the UOB Real Estate Sustainable Finance Framework, the S$120 million green loan is a first for The Farrer Park Company
The Farrer Park Company Pte Ltd has obtained a S$120 million green loan from United Overseas Bank Limited (UOB), the first such loan for a healthcare facility in Singapore. The loan is issued under the UOB Real Estate Sustainable Finance Framework1 and will be used to re-finance Connexion, Singapore’s first integrated healthcare and hospitality complex which houses the Farrer Park Medical Centre, Farrer Park Hospital and One Farrer Hotel.
The loan supports The Farrer Park Company’s continued efforts in ensuring that it is environmentally responsible in its operations. One of the features already implemented in Connexion’s design is the use of low-emissivity glass to reflect heat and to keep cool air within its premises for more efficient energy consumption. Connexion’s management also actively monitors energy and water consumption and pursues opportunities to lower its carbon footprint.
Connexion has been certified as a Green Mark Platinum building by the Singapore Building and Construction Authority (BCA) since 2011, the highest distinction in the green building rating system. To be recognised and re-certified as a Green Mark Platinum building, Connexion needs to meet a list of performance metrics, including achieving at least 30 per cent in energy savings as compared with developments of a similar size.
Dr Peng Chung Mien, Chief Executive Officer of The Farrer Park Company, said, “Environmental sustainability has been in our DNA since our inception. Our goal to make a positive difference in the environment and society remains unchanged today. Becoming the first healthcare building to receive the green loan underscores our commitment to reduce our carbon footprint and prove how sustainability can go hand in hand with design, quality and service.”
Mr Leong Yung Chee, Head of Corporate Banking Singapore, UOB, said, “To help more of our clients access green financing as part of their sustainability goals, we launched the UOB Real Estate Sustainable Finance Framework in October last year. This is the first lending framework for the sector established by a Singapore bank and makes it easier for companies to apply for sustainability-linked or green loans as they do not need to come up with their own sustainable finance framework.
“Through our collaboration with The Farrer Park Company on Singapore’s first green loan for a healthcare facility, we hope to lead the way for more healthcare companies to consider the use of green financing in their sustainability efforts. This will not only support our collective efforts in transitioning towards a lower carbon economy but also encourages companies to consider their environmental, social and governance risks, particularly against the backdrop of the COVID-19 pandemic.”
1 The UOB Real Estate Sustainable Finance Framework is the first lending framework for the sector established by a Singapore bank. It is specifically developed for companies that own or manage real estate assets, such as data centres, hotels, industrial and residential properties, offices, restaurants and retail spaces. Please refer to the news release for more information: https://www.uobgroup.com/web-resources/uobgroup/pdf/newsroom/2019/UOB-Real-Estate-Sustainable-Finance-Framework.pdf
