The move is another sign of how banks these days stress environmental credentials, not just out of concern for issues such as global warming, but also because of the degradation of natural habitats, water pollution and rainforest depletion.

Three major banks in Singapore have provided a $S945 million ($697 million) “green loan” to support the purchase of mixed office assets in the Asian city-state.

United Overseas Bank, DBS Bank and Standard Chartered Bank (Singapore) have teamed up to provide a loan to Allianz Real Estate and Gaw Capital Partners. The firms are jointly buying DUO Tower and DUO Galleria. 

The buildings have been granted the Green Mark Platinum Certification awarded by the Singapore Building and Construction Authority since 2013. This recognises the mixed-office and retail development’s “green” features, such as the double-glazed low-emission glass exterior, rainwater harvesting system and surrounding lush green landscape.

The three banks acted as green loan advisers, joint mandated lead arrangers, underwriters and book-runners for Ophir-Rochor Commercial Pte, the joint venture between Allianz Real Estate – acting on behalf of several Allianz group companies – and Gaw Capital Partners. UOB also acted as the facility and security agent for the syndicated green loan.

KPMG in Singapore provided independent limited assurance on Ophir-Rochor Commercial’s green loan framework.

In November, DBS said that it had become the first bank in Southeast Asia to adopt “Equator Principles” which guide banks and other financial firms about environmental risks in large projects.