Singapore, 11 January 2024 – SP Group (SP) announced that it has secured a S$650 million committed green loan facility from Bank of China, DBS Bank, Maybank Singapore, OCBC and UOB in December 2023. This is SP’s largest green loan secured and will be aligned to SP’s updated Green Financing Framework. The loan will be used to finance and/or refinance loans relating to the construction, development, ongoing operations and maintenance of SP’s upcoming Labrador Tower development.

Labrador Tower is a Building and Construction Authority (BCA) certified Green Mark Super Low Energy (GM SLE) building that comprises a Grade A office block and retail space. The development incorporates SP’s suite of digital and sustainable energy solutions – including Green Energy Technology (GET™) that uses artificial intelligence and Internet of Things (IOT) to manage and reduce energy consumption), sustainable cooling and thermal energy storage, solar panels and EV charging facilities. When it is completed in mid-2024, it would be one of the first commercial buildings in Singapore to operate under the GM SLE category and is expected to achieve at least 40 per cent energy savings based on BCA’s prevailing building code. Labrador Tower is located above another sustainable energy infrastructure developed by SP Group – a large-scale underground 230kV electricity substation that optimises land space in Singapore.

As part of SP’s ongoing commitment towards a low-carbon future, the company also refined its Green Financing Framework to reflect SP’s latest sustainability roadmap. The enhanced Framework will deepen the integration of SP’s sustainability roadmap into its financing strategy and provide greater visibility of how SP aims to create positive environmental impact and empower a low-carbon, smart energy future for Singapore and the region.

The Framework was found to be credible and aligned to the latest relevant international principles and guidelines[1] by DNV Business Assurance Singapore Pte. Ltd (“DNV”), who was appointed to provide a second party opinion on the updated Framework. One of the revisions include tightening of the eligibility criteria for green buildings to minimally achieve the BCA Green Mark GoldPlus Certification, or equivalent standards, to be considered for green financing.

Chief Financial Officer of SP Group, Ms Loong Hui Chee, said, “Green financing is integral to SP Group’s strategy in empowering a clean energy future for Singapore and across our key markets. We are pleased to secure our largest green loan to date for our upcoming super low-energy Labrador Tower development through the partnership of our environmentally-focused financers – Bank of China, DBS Bank, Maybank Singapore, OCBC and UOB. Advanced under our Green Financing Framework, this strengthens the sustainability credentials of Labrador Tower and positions the development as one of the most energy-efficient commercial buildings in Singapore and across the region.”

More information on SP’s enhanced Green Financing Framework can be accessed at https://spgrp.sg/GreenFinancingFramewok and the second party opinion by DNV can be accessed at https://spgrp.sg/DNV-Opinion.

About SP Group

SP Group is a leading utilities group in the Asia Pacific, empowering the future of energy with low-carbon, smart energy solutions for its customers. It owns and operates electricity and gas transmission and distribution businesses in Singapore and Australia, as well as sustainable energy solutions in Singapore, China, Thailand and Vietnam. 

As Singapore’s national grid operator, about 1.6 million industrial, commercial and residential customers benefit from its world-class transmission, distribution and market support services. These networks are amongst the most reliable and cost-effective worldwide. 

Beyond traditional utilities services, SP Group provides a suite of sustainable and renewable energy solutions such as microgrids, cooling and heating systems for business districts and residential townships, solar energy solutions, electric vehicle fast-charging stations and digital energy solutions for customers in Singapore and the region. 

For more information, please visit spgroup.com.sg or follow us on Facebook at spgrp.sg/facebook, LinkedIn at spgrp.sg/linkedin and Instagram at spgrp.sg/Instagram.

ANNEX A: Quotes from our Bank Partners

“Bank of China is pleased to support the SP Group’s updated Green Financing Framework through this green loan facility for Labrador Tower. It is testament to Bank of China’s commitment to global sustainable development, and is aligned with our green finance policy system and our goal to be the bank of choice for green finance services.”

Yuan Zhizhong, Deputy Country Manager, Bank of China Limited, Singapore Branch

“The upcoming Labrador Tower development is a stride towards a more sustainable urban landscape and a demonstration of how finance and technology can be applied in novel ways to improve energy efficiency and drive real world impact. DBS is committed to supporting initiatives that contribute to a greener and more sustainable future, and we are proud to be making a contribution to the broader transition towards a more environmentally conscious and resilient economy.”

Lim Wee Seng, Group Head of Energy, Renewables and Infrastructure, Institutional Banking Group, DBS Bank 

“Greening the built environment is a critical part of Singapore’s Green Plan to achieve net zero emission targets by 2050. Towards this, SP's Labrador Tower is poised to establish a new benchmark for best-in-class green properties in the country as well as the region. We look forward to further partnerships with SP on their sustainable financing needs, driven by our shared commitment for a low-carbon future, aligning with Maybank’s sustainability aspirations in ASEAN.”

Gregory Seow, Head of Global Banking, Maybank Singapore

“We are pleased to support our long-time customer SP Group in their pursuit of a low-carbon future. Labrador Tower is a landmark development that stands out with its extensive green and energy-efficient features, accredited with a BCA Green Mark Super Low Energy Building Certification. Once completed in 2024, it will be one of the first commercial buildings in Singapore to operate under the GM SLE category, attesting to SP Group's dedication to sustainability. We are glad to contribute to the financing of this development, and we look forward to partnering SP Group on more sustainable finance deals in future.”

Elaine Lam, Head of Global Corporate Banking, OCBC

“UOB is pleased to return as one of SP’s choice financing partners, following the provision of its inaugural green loan in 2021. Our commitment to make ESG a mainstream focus is evident, with a strong 67 per cent growth in sustainable finance portfolio to $38 billion as of end September 2023. As the One Bank for ASEAN, we are well positioned to work with SP and like-minded businesses to build a resilient and sustainable future for the region.”

Leong Yung Chee, Head of Group Corporate Banking, UOB

¹Green Bond Principles 2021 by the International Capital Market Association; Green Loan Principles 2023 by the Loan Market Association, Asia Pacific Loan Market Association and Loan Syndications and Trading Association; ASEAN Green Bond Standards 2018 by the ASEAN Capital Markets Forum.