Hong Leong-led consortium secures $692 mil green loan from DBS, OCBC for Tengah’s first private mixed-use development

A Hong Leong Holdings-led consortium, consisting of joint venture associates GuocoLandLimited and CSC Land Group, has obtained a $692 million green funding from DBS Bank and Oversea-Chinese Banking Corporation (OCBC) to fund a “nature-aligned” urban development project in Tengah.

The loan, design in accordance with globally recognized Green Loan Principles, will finance the project’s green infrastructure and ecological assimilation efforts, according to a June 3 statement.

Some nature-related functions of the project include “native planting strategies”, “ecological corridors” of layered landscaping and integrated eco-friendly spaces, and “sustainable smart technologies” to reduce waste.

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Loke Kee Yeu, Hong Leong Holdings’ overall manager (projects), says: “As the first developer to start Tengah’s maiden private green housing development, we aim to support and grow an eco-conscious private real estate neighborhood while partnering with similar investors and sustainable financiers such as DBS and OCBC to bring economic savings and benefit homeowners in this new smart town area. With the global shift to a low-carbon economy, we are improving our role as a reputable property developer by installing responsible green practices across our building procedures for a more sustainable future.”

Tengah– Singapore’s first brand-new Housing Board town ever since Punggol more than two decades ago– is envisioned as a car-lite, environmentally friendly town spanning 700ha. When fully established, it will give about 42,000 brand-new homes.

Slated for kick off in 2026, the Hong Leong Holdings venture will be Tengah’s first exclusive mixed-use non commercial project. Situated in Tengah Garden Avenue, it intends to create a vibrant residential development making up roughly 860 homes together with integrated retail amenities.

DBS acted as anchor lender and main green loan consultant, contributing $484 million, with the remainder supplied by OCBC.

Chew Chong Lim, group head of real estate and shipping, aviation, logistics and transportation, institutional banking at DBS, says: “Climate change is increasing, and altering how we live, work and play. In this developing landscape, including nature into city development is of growing value to create more sustainable and resilient townships where people can prosper and appreciate nature.”