Cdl Secures 400 Mil Sustainability Linked Loan Dbs Tnfd Aligned Targets First Its Kind
for fourth year in a row by GRESB
City Developments Limited (CDL) recently announced that it has secured a $400 million sustainability-linked loan (SLL) from DBS Bank, with specific performance targets aligned with the Taskforce on Nature-related Financial Disclosures’ (TNFD) recommendations.
This marks the first SLL in Singapore to incorporate nature conservation targets, including biodiversity conservation, waste management, and water efficiency.
The loan will be used for general corporate funding and working capital purposes, as well as for the redevelopment of CDL’s existing assets.
In March, CDL became the first company in Singapore to publish TNFD-aligned disclosures, demonstrating its commitment to addressing nature-related issues.
The company’s latest sustainability report includes disclosures aligned with Target 15 of the Kunming-Montreal Global Biodiversity Framework, which was adopted in December 2022 at COP15.
Yiong Yim Ming, Group Chief Financial Officer of CDL, believes that robust sustainability reporting can encourage capital to help expedite green building and climate action. He stated, “We are pleased to partner with DBS on this groundbreaking financial solution aligned with our nature-specific climate action targets.”
CDL has secured over $8 billion in sustainable financing since 2017 to develop smarter, greener, and more nature- and climate-friendly infrastructure. Its goal is to enhance its triple bottom line, achieve its net-zero goals, and align finance with sustainability performance through innovative capital management initiatives.
At least four other local firms have committed to starting to disclose nature-related issues by the end of 2025. These include United Overseas Bank (UOB), Olam Agri, consultancy firm Oceonomy, and Olam Food Ingredients (ofi).
The TNFD was established in June 2021 with the support of G20 and G7 governments. In September 2023, after a two-year process led by the Taskforce’s 40 members and supported by 20 knowledge partners, the TNFD issued its corporate reporting recommendations on nature-related issues.
The TNFD has released 14 disclosure recommendations, as well as a guidance document for organizations to report and act on evolving nature-related dependencies, impacts, risks, and opportunities. Climate change, pollution, and the use of land, freshwater, and ocean are among the “drivers of nature change.”
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CDL has been integrating environmental, social, and governance (ESG) considerations into its business operations since 1995. The company established a climate change policy in 2015 and published a set of climate-related targets in 2017 to minimize its environmental impact.
In 2017, CDL became the first real estate developer in Singapore and the first real estate conglomerate in Southeast Asia to sign the WorldGBC’s Net Zero Carbon Buildings Commitment.
According to CDL, it has a “long-standing partnership” with DBS to advance the sustainability agenda in Singapore. DBS supported CDL’s launch of Singapore’s first green bond in 2017, and in 2019, CDL introduced its first sustainability-linked loan with DBS, receiving a discount on the SDG Innovation Loan used to pilot DigiHUB, an in-house digital platform for improving building management efficiency.
Earlier this year, DBS was named the financial partner for CDL’s SME Supplier Queen Bee Programme, which aims to help SMEs decarbonize and manage their Scope 3 emissions through improved carbon accounting and reporting.
Chew Chong Lim, Group Head of Real Estate in DBS’s Institutional Banking Group, believes that integrating considerations around biodiversity and ecosystem preservation into financial solutions is critical. He stated, “This first-of-its-kind sustainability-linked loan, aligned with CDL’s TNFD-related targets, demonstrates our commitment to exploring new frontiers in the ESG space, and helping to build a future where economic growth and ecological stewardship go hand in hand.”
As of 11:30 am, CDL’s shares are trading flat at $5.35, while DBS’s shares are trading 10 cents higher, or 0.28%, at $35.64.