CDL Secures Discount for its First-of-its-kind Sustainability-linked Loan on SDG Innovation
- First in Singapore to adopt and apply SDG Innovation linked finance on a large-scale basis
- digiHUB, a Facilities Management (FM) digital platform developed by its subsidiary, CBM Pte Ltd, is supported by the Infocomm Media Development Authority (IMDA)
Singapore, 6 September 2021 – For its successful R&D and pilot of digiHUB, City Developments Limited (CDL) has secured a discount for the SDG Innovation Loan provided by DBS Bank Ltd. (DBS) in September 2019. It is the first Singapore entity to achieve a discount on a sustainability-linked loan through the adoption of an innovative project that supports the United Nations Sustainable Development Goals (SDGs) on a large-scale basis.
digiHUB is a digital platform that focuses on predictive and integrated FM solutions. Developed by CBM Pte Ltd, a major subsidiary of CDL, digiHUB integrates three key technological advances in the digital age – Internet of Things (IoT) Sensors, Analytical Tools, and Artificial Intelligence and Machine Learning, to synergise the different IT capabilities and revolutionise the delivery of FM services. Unlike conventional FM Systems which focus on tracking of internal work progresses, digiHUB creates an eco-system which enables property owners to have a broad overview on the performance of their assets, obtain insights for making strategic business decisions, reduce maintenance costs via predictive strategies, achieve higher efficiency and effectiveness of maintenance activities through intelligent building analytics, reduce reliance on manual labour, and increase FM productivities.
digiHUB allows a seamless transmission of feedback to the building management team, where the follow up and rectification of the problems can be promptly notified to the complainant. It is a flexible, easy-to-use, networked integrated property management system that facilitates the monitoring of energy conservation measures, optimising the FM manpower deployment, and utilises Artificial Intelligence and Machine Learning for predictive maintenance, thus conserving long term FM operating costs.
Its proof-of-concept and pilot was first carried out in 2019 at Republic Plaza, CDL’s flagship building, and its completion was endorsed by IMDA. CBM Pte Ltd has also recently secured a contract to proliferate digiHUB at all Land Transport Authority (LTA) properties located island-wide. It will continue to replicate the state-of-the-art digiHUB commercially for the benefit of the built environment sector.
CDL’s SDG Innovation Project supports SDG 9: Industry, Innovation and Infrastructure and SDG 12: Responsible Consumption and Production. It complements global net zero goals and the Singapore Green Plan 2030, which is the Singapore government’s blueprint for climate action, green innovation and sustainable development.
Ms Esther An, CDL Chief Sustainability Officer, said, “The SDG Innovation Loan was designed to advance our commitment to R&D and technology application that will accelerate sustainable development. To mitigate and adapt to climate, health, and social risks, sustainable innovation will remain a key priority for CDL. With our pledge to the World Green Building Council’s Net Zero Carbon Buildings Commitment in February this year, we will further advance our decarbonisation efforts towards achieving net zero operational carbon by 2030. Moving forward, the fast-growing sustainable finance will remain a key enabler for green building and technology applications.”
Mr Chew Chong Lim, Group Head of Real Estate, Institutional Banking, DBS Bank, said, “As a purpose-driven bank, we firmly believe that the way we choose to direct capital has a meaningful bearing on shaping sustainable business models, and the way in which we structured the SDG Innovation Loan with CDL bears testament to that. We are pleased that our partnership with CDL on the nation’s first sustainable financing instrument tied to SDG innovation has borne fruit, and demonstrated how digital innovation can be channelled towards achieving sustainable outcomes. With sustainable finance set to be a key enabler for companies to achieve their ESG objectives, DBS is committed to partnering like-minded clients such as CDL in structuring innovative solutions to help realise a more sustainable tomorrow for all.”
With innovation identified as one of CDL’s top material ESG issues since 2014, the company has intensified its search and application of viable innovations and technologies to reduce its environmental impact and carbon footprint. In 2020, in support of Singapore’s long-term low-emissions development vision, CDL and SERIS jointly applied for a Solar Competitive Research Programme in 2020 to testbed BIPV innovations. One such pilot is the Solar Modular Pod, which integrates high-power density BIPV modules into a Prefabricated and Prefinished Volumetric Construction (PPVC) unit installed at a roof top carpark. Integration of BIPV modules with such prefabrication technology could greatly reduce the cost of BIPV, while PPVC technology improves construction productivity and reduces cost as it is deployed modularly at the construction site. The various BIPV elements are monitored and evaluated for their indoor thermal and visual comfort, as well as electrical performance.
CDL’s strong ESG track record has helped the company and its joint venture (JV) partners gain access to fast-growing sustainable finance. Since issuing its first green bond in 2017, CDL has secured more than S$3 billion of sustainable financing in the form of various green loans, a green bond, and a sustainability-linked loan. In August 2021, CDL secured two green loans totalling S$847 million jointly with MCL Land. Both facilities are some of the largest green loans in real estate referencing the Singapore Overnight Rate Average (SORA) to date and also mark both developers’ first SORA-based green loans.
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Issued by City Developments Limited (Co. Regn. No. 196300316Z)
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