Singapore’s City Developments Limited (CDL) has secured a new SGD 300 million multi-currency sustainability-linked loan (SLL) from DBS Bank, aimed at accelerating the integration of nature-based solutions into the developer’s urban real estate portfolio.
The facility builds upon CDL’s initial Taskforce on Nature-related Financial Disclosures (TNFD) targets-aligned SLL launched in 2024, representing an ongoing shift within corporate finance to explicitly tie lending terms to biodiversity and ecosystem preservation.
The loan was structured in accordance with the globally recognised Sustainability-Linked Loan Principles. It introduces specific sustainability performance targets designed to support Singapore’s Green Plan 2030, which aims to transform the city-state into a “City in Nature.”
To qualify for preferred financing rates, CDL must meet specific benchmarks across several urban environmental indicators, including:
- Establishing and expanding microforests composed primarily of native plant species across its properties.
- Scaling dedicated urban farming initiatives within its developments.
- Adopting circular, low-carbon materials in new construction projects.
- Improving structural water efficiency and enhancing tenant engagement regarding climate and nature conservation.
“Since 2017, we have secured over SGD 11 billion in sustainable financing that supports our net-zero ambitions,” said Yiong Yim Ming, Group Chief Financial Officer at CDL. “This latest SLL reflects the next evolution of our sustainability journey, embedding measurable nature-based targets into our financing framework and further aligning our financial strategy with environmental outcomes.”
Chew Chong Lim, Group Head of Real Estate within the Institutional Banking Group at DBS, re-emphasised the real estate sector’s significant footprint and its responsibility to pivot toward greener models. “This latest facility demonstrates how industry expertise, structuring capabilities and sustainability knowledge can come together in the form of financing to enable more resilient urban spaces,” Chew stated.
