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Straits Times
03-06-2025
- Business
- Straits Times
$692 million green loan secured for project in Tengah's ‘forest' estate
The Tengah area is divided into five districts and will offer some 42,000 new homes when fully completed. PHOTO: HDB SINGAPORE – A green loan of $692 million has been secured for a project in the upcoming Tengah 'forest' town, which has been billed as Singapore's first eco-friendly and car-lite green estate. The loan was secured by a consortium led by Hong Leong Holdings, together with joint venture partners GuocoLand and CSC Land Group. The loan is anchored by DBS Bank, providing $484 million, with the remainder from OCBC Bank. The loan will fund the project's green infrastructure and ecological integration efforts, DBS said on June 3. The Tengah area is divided into five districts and will offer some 42,000 new homes when fully completed. It is bounded by a 100m-wide and 5km-long forest corridor and spans 700ha. Homes in Tengah are also built with smart technologies, such as a centralised cooling system – an energy-efficient alternative to conventional air-conditioning. The Hong Leong Holdings project that the green loan supports will be located in Tengah Garden Avenue and is slated for launch in 2026, as Tengah's first private mixed-use residential development. It will have around 860 homes, together with integrated retail amenities. Green loans are used to finance eligible green projects with clear environmental benefits like energy efficiency and pollution prevention. Borrowers need to clearly state the environmental sustainability objectives of their projects, among other criteria, in order to get the green loans. Green loans can provide preferential terms compared with normal loans, and can also provide other benefits to borrowers, such as helping them to meet regulatory requirements or consumer demands. Hong Leong Holdings general manager of projects Loke Kee Yeu said: 'With the global shift to a low-carbon economy, we are reinforcing our role as a reputable developer by embedding responsible green practices across our building processes for a more sustainable future.' Mr Chew Chong Lim, DBS institutional banking group head of real estate and shipping, aviation, logistics and transportation, said: 'Climate change is accelerating, and changing how we live, work and play. 'In this evolving landscape, integrating nature into urban development is of growing importance to build more sustainable and resilient townships where people can thrive and enjoy nature.' Sue-Ann Tan is a business correspondent at The Straits Times covering capital markets and sustainable finance. Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
03-06-2025
- Business
- Business Times
Hong Leong-led consortium secures S$692 million green loan from DBS, OCBC for Tengah's first private mixed-use project
[SINGAPORE] A consortium led by Hong Leong Holdings has secured a S$692 million green loan to finance the development of Tengah's first nature-centric private mixed-use residential project. DBS , the anchor lender and sole green advisor for the deal, will contribute S$484 million to the green loan, the bank said on Tuesday (Jun 3). OCBC will provide the remaining S$208 million. Structured in line with internationally recognised Green Loan Principles, the financing will support the consortium's investments in green infrastructure and ecological integration. The consortium includes joint venture partners GuocoLand and CSC Land Group. Chew Chong Lim, DBS' group head of real estate and shipping, aviation, logistics and transportation, institutional banking, noted that climate change is accelerating, and changing the way residents live, work and play. 'In this evolving landscape, integrating nature into urban development is of growing importance to build more sustainable and resilient townships where people can thrive and enjoy nature,' he said. The project is located on a 25,458.4-square-metre site at Tengah Garden Avenue. It can potentially yield around 860 homes with integrated retail amenities, and is slated for launch in 2026. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up It will feature biodiversity-friendly design, native landscaping, and smart construction technologies to enhance ecological integration, reduce environmental impact and support sustainable urban living. Hong Leong Holdings' general manager for projects, Loke Kee Yeu, said the group aims to anchor an eco-conscious private housing community in Tengah while embedding responsible green practices in line with the shift towards a low-carbon economy. The project aligns with national plans to develop Tengah – Singapore's first new Housing Board town since Punggol more than 20 years ago – as an eco-friendly, car-lite 'forest' town When fully developed, Tengah is expected to offer about 42,000 homes set within a 100 metre-wide and five kilometre-long forest corridor.
