Singapore’s CapitaLand raises $230m green loans for India business parks

A laborer walks in front of a CapitaLand logo at a construction site in Singapore. Photographer: Charles Pertwee/Getty Images

Singapore’s CapitaLand Ltd has secured its first three green loans in India, worth 1,700 crore ($230 million), from DBS Bank India Ltd and Hong Kong and Shanghai Banking Corporation Ltd India.

The debt will be used to finance the development of its green-certified International Tech Parks in Chennai, Gurugram, and Pune. The green loans mark CapitaLand’s entry into sustainable finance in India, the company said on Wednesday.

“…The securing of the first green loans in India demonstrates CapitaLand’s commitment to grow our business in a responsible manner as we create long-term value for our stakeholders. We are glad to work with like-minded partners such as DBS and HSBC who support CapitaLand’s aim to develop greener buildings while continuing to contribute to the environmental and social well-being of our communities,” Vinamra Srivastava, CEO, Business Parks, CapitaLand India, said.

The four-and-a-half-year 625 crore (S$118.8 million1) and three-year 425 crore (S$80.8 million1) green loans raised from DBS will be used to fund the development of Phase 1 of International Tech Park Chennai, Radial Road and Phase 1 of International Tech Park Gurugram respectively.

The four-year 650 crore (S$123.5 million1) green loan provided by HSBC India will be used to finance the development of International Tech Park Pune in Kharadi.

Chew Chong Lim, managing director and global head of real estate, Institutional Banking, DBS, said DBS and CapitaLand have built a meaningful relationship over the years and in more recent times deepened our collaboration in finding sustainable financing solutions for green developments.

“We are delighted to partner CapitaLand on two green loans, which are also the first by any Singapore-based lender in India. Sustainable financing in the real estate sector will continue to gain prominence in Asia, and DBS looks forward to collaborating with our customers in developing responsible financing solutions to meet the sustainability challenges ahead of us,” Lim said.

As part of CapitaLand’s 2030 Sustainability Master Plan, the group aims to green its entire global portfolio by 2030. CapitaLand also targets to secure S$6 billion through sustainable finance such as sustainability-linked loans, green loans and green bonds.

With the addition of the three green loans in India, CapitaLand Group including its business units and real estate investment trusts have raised a total of more than S$3.6 billion through sustainable finance thus far.

“…As we enter a pivotal decade of change, we look forward to supporting CapitaLand as their banking partner in building a healthier, more resilient, and more sustainable future,” said Hitendra Dave, Head, Global Banking & Markets, HSBC India.

In India, CapitaLand has a portfolio of over 20 business and IT parks, industrial, lodging and logistics properties across seven cities – Bengaluru, Chennai, Goa, Gurugram, Hyderabad, Mumbai and Pune.

CapitaLand, which is headquartered and listed in Singapore, owns and manages a global portfolio worth about S$133.3 billion as at 30 September. It manages six listed real estate investment trusts (Reits) and business trusts as well as over 20 private funds.

The article was first published on livemint.com.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.