In recognition of CDL’s leadership in green finance and for issuing the first green bond by a listed Singapore company in 2017, the property developer has emerged as the winner for the “New Countries Taking Green Bonds Global” category at the third Annual Green Bond Pioneer Awards.

Green bonds are used to fund projects that have positive impact on the environment and/or climate benefits.

Organised by Climate Bonds Initiative, an investor-focused not-for-profit working to mobilise bond markets for climate change solutions, the award ceremony was held in London in March 2018.

CDL Group Chief Strategy Officer, Mr Kwek Eik Sheng received the award on CDL’s behalf. He said, “With the urgent need to tackle climate change and to decarbonise our infrastructure and operations, green financing is certainly opening alternative financing streams for businesses to step up on climate action. CDL is honoured to have kick started the green bond issuance by a listed Singapore company in April 2017 and has seen two more green bonds issued by others subsequently. We believe that the connection between finance and sustainability is the way forward and hence there will be stronger interest and uptake in tapping on green financing. Collaboration and resources are key for businesses to contribute to global sustainable development.”

CDL, through its wholly-owned subsidiary CDL Properties Ltd (CDLP), launched its pioneer green bond in April 2017. The two-year senior secured green bond raised S$100 million at 1.98% fixed rate due 2019, with all proceeds allocated to the repayment of a loan extended by CDL to CDLP which owns Republic Plaza.

Completed in 1996, Republic Plaza is one of Singapore’s tallest skyscrapers and a premium Grade A office building in the heart of the city’s Central Business District. It received the highest Green Mark Platinum rating from the Building and Construction Authority in 2012 and has continuously been upgraded since its completion, including the major retrofitting of chiller plants and installation of energy efficient lightings with motion sensors, to improve energy efficiency.

The global demand for green bonds is fuelled by the Paris Climate Change Agreement, which took effect in November 2016. More investors are seeking to fund low-carbon and climate-resilient projects that are aligned with the goal of limiting global warming to below two-degrees Celsius. Locally, the government and private sector have also been pushing for more sustainability-oriented benchmarks, funds and products. With Singapore having declared 2018 its Year of Climate Action, interest and demand are set to continue rising among a growing pool of socially-conscious investors.