Malaysia’s second largest pension fund Kumpulan Wang Persaraan (KWAP) has secured a A$207 million (US$137.69 million) green loan from Singapore’s DBS Bank Ltd to refinance an office tower in Australia.
This is the pension fund’s first ever green loan, DBS says in a statement on November 30.
The loan is to refinance the 17-level office tower located on Collins Street in Melbourne, in the state of Victoria. The statement does not say when KWAP originally purchased the asset.
According to KWAP Chief Investment Officer Hazman Hilmi Sallahuddin, the pension fund’s top priority is to build a portfolio that generates long-term returns, and it’s an “even greater achievement” if this can be done in accordance with environmental, social and governance principles.
“We are thrilled to work with DBS as we progress on this path towards making environmentally and sustainably conscious decisions for our portfolio,” he says.
There is growing demand for green finance products from a wide spectrum of organisations, according to Neeraj Mittal, country head of DBS Australia.
“We have been financing green infrastructure and properties across Asia Pacific to support the region’s transition towards a low carbon future,” he says.
KWAP, which manages the pension savings of civil servants, had 184.5 billion ringgit ($39.70 billion) assets under management as of end-July.
