The bank has issued three loans under a new framework that helps SMEs in the real estate sector develop sustainable buildings.
UOB has issued loans totaling S$140 million ($102.93 million) to Lucrum Capital and Teambuild Engineering & Construction, which will be used for the construction and operation of green buildings in Singapore, the bank announced in a statement on Thursday.
The loans were issued under the bank's new Real Estate Sustainable Finance Framework, the first of its kind for the sector by a Singapore bank, which aims to help companies that own or manage real estate assets get sustainability-linked or green loans.
Energy-Efficient Buildings
Private equity firm Lucrum Capital, which received two green loans, will use the funds to build a six-story hotel on Killiney Road. It will incorporate climate-responsive and energy-efficient features, as well as energy and water monitoring and management systems, the announcement said.
The firm has already provisionally applied for the Building Construction Authority's (BCA) Green Mark Platinum Award for environmentally friendly buildings.
Teambuild's integrated construction and prefabrication hub on Defu Lane (Image: Teambuild Engineering & Construction)
Teambuild is using its green term loan for its integrated construction and prefabrication hub (pictured above), which uses an energy management system to track energy consumption, as well as green walls and rooftop solar panels with a total solar capacity of 58.9 megawatt-peak.
Supporting Sustainable Development
KPMG advised UOB in the development of the framework, which is in line with the Green Loan Principles and the Sustainability Linked Loan Principles issued by the Loan Market Association in 2018 and 2019 respectively.
Under the framework, UOB will record and monitor the borrower’s management of loan proceeds, as well as track the sustainability metrics as agreed with the company, the bank said.
«We will continue to roll out similar frameworks for other sectors as part of our commitment to partnering customers in our support of the United Nations Sustainable Development Goals,» Lam Li Min, UOB's head of Real Estate and Hospitality, Sector Solutions Group, said.
