Singapore’s CapitaLand has secured its first three green loans worth Rs.1,700 crore in India, from Hong Kong & Shanghai Banking Corporation and DBS Bank India.

The loan obtained would be used to finance the development of its green certified International Tech Parks in Chennai, Gurugram, and Pune. With this loan, CapitaLand venture into sustainable finance in India, says the company.

Vinamra Srivastava, CEO, Business Parks, CapitaLand India states, “The securing of the first green loans in India demonstrates CapitaLand’s commitment to growing 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."

The company has raised green loans for about four and a half years Rs.625 crore and three-year Rs.425 crore from DBS and that would 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.

Chew Chong Lim, Managing Director and Global Head of Real Estate, Institutional Banking, DBS, says that DBS and CapitaLand have developed a meaningful relationship over the years and in recent times the relationship has deepened our collaboration in finding sustainable financing solutions for green developments.

He further adds “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."
CapitaLand is planning to build sustainability by 2030, and as a part of the plan, the group is aiming to go green on its entire global portfolio by 2030. Furthermore, the company also intends to secure $6 billion through sustainable finance such as green loans, green bonds, and sustainability-linked loans.

In addition to the green loans acquired from India, the company is including its business units and real estate investment trusts that have obtained a total of more than S$3.6 billion through sustainable finance.

Hitendra Dave, Head, Global Banking & Markets, HSBC India says, “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."