The bank has issued a S$237 million ($169.62 million) loan under its Real Estate Sustainable Finance Framework, which will be used to refinance the Grand Park City Hall hotel.
UOB Bank has issued the largest green loan for any hotel property in Singapore from a single financial institution to Park Hotel Group, the group's first green loan, the two parties announced in a joint statement on Tuesday.
The funds will go toward refinancing the Grand Park City Hall, a 343-room luxury hotel located in the city-state's civic district that recently underwent major refurbishment as part of a mixed-use lifestyle precinct. Among its energy and waste consumption reduction measures include a rainwater harvesting system, water- and energy-efficient fixtures, centralized chilled water system, high-performance air-to-water heat pump and mechanical ventilation fans.
The hotel, which holds a Platinum Green Mark – the highest distinction in Singapore's green building rating system – was recognized for its innovative use of technology and adoption of sustainable practices.
Green Financing Grows
In October 2019, the bank issued its first three loans under its Real Estate Sustainable Finance Framework, aimed at helping SMEs in the real estate sector develop sustainable buildings. The framework 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.
«In meeting our clients’ financial needs, green financing is one way we partner them to promote sustainable development,» Leong Yung Chee, head of Corporate Banking Singapore, UOB, said about the loan to Park Hotel Group.
Other green loans issued in Singapore recently include a S$945 million loan to Allianz Real Estate and Hong Kong private equity firm Gaw Capital Partners by UOB, DBS Bank and Standard Chartered Bank (Singapore) in October, and a S$332.5 million green club loan issued to Hoi Hup Realty subsidiary Ophir-Rochor Hotel by OCBC, UOB and Maybank Singapore, to partially finance the purchase of luxury hotel Andaz Singapore in December.
