DBS has provided Retirement Fund (KWAP) – the largest public sector pension fund in Malaysia – with an A$207 million (US$136.5 million) green loan to refinance a Grade A green office tower in Australia.
The 17-level office building, wholly owned by KWAP, is located on Collins Street, Melbourne, and holds a 6-Star NABERS energy rating (without green power) – the highest rating for building energy efficiency in Australia. This is in recognition of its many sustainability attributes, including rooftop solar panels and a tri-generation system that recycles waste heat from onsite power generation for heating and cooling purposes.
DBS provided the green loan for the building in accordance with its sustainable and transition finance framework and taxonomy, which was launched in 2020 to help clients transition towards more sustainable business models. The loan provisions are aligned with internationally-recognised Green Loan Principles.
TrustCapital Advisors Investment Management is KWAP’s investment manager for this green loan.
“The built environment sector is ripe for decarbonization as it accounts for a quarter of all greenhouse gas emissions,” says Niraj Mittal, country head of DBS Australia. “The industry recognizes this as we have observed growing demand for green finance products from a wide spectrum of organizations and not just real estate companies.”