Malaysia’s KWAP Gets S$180M Green Loan from DBS for Aussie Office Refinancing – Fintech Singapore

DBS Bank has provided a green loan of AUD 207 million (S$180 million) to Malaysia’s Retirement Fund (KWAP). The loan is designated for refinancing a high-grade green office building in Melbourne, Australia.

The office tower, entirely owned by KWAP, is situated on Collins Street in Melbourne and boasts a 6 Star NABERS energy rating, the highest achievable in Australia.

This rating reflects the building’s advanced sustainability features, including rooftop solar panels and a trigeneration system that efficiently utilizes waste heat for heating and cooling.

DBS‘ green loan aligns with its Sustainable and Transition Finance Framework and Taxonomy, established in 2020. The framework aims to assist clients in adopting more sustainable business practices, and the loan adheres to the internationally recognized Green Loan Principles.

The investment management for this green loan is handled by TrustCapital Advisors Investment Management, representing KWAP.

Niraj Mittal

Niraj Mittal, Country Head of DBS Australia said,

“The built environment sector is ripe for decarbonisation as it accounts for a quarter of all greenhouse gas emissions. The industry recognises this as we have observed growing demand for green finance products from a wide spectrum of organisations and not just real estate companies.

 

We have been financing green infrastructure and properties across Asia Pacific to support the region’s transition towards a low carbon future. In Australia, we are very active in green and sustainability-linked financing to support our strategic clients’ sustainability goals.”

Hazman Hilmi Sallahuddin

Hazman Hilmi Sallahuddin, Chief Investment Officer of KWAP said,

“Building a portfolio that generates long-term returns for our stakeholders has always been KWAP’s top priority as part of our value creation journey.

 

It is an even greater achievement if it can be accomplished in a way that supports our effort to continue spearheading the ESG agenda. We are thrilled to work with DBS as we progress on this path towards making environmentally and sustainably conscious decisions for our portfolio.”