CapitaLand secures Rs 625 crore green loan for Chennai project

Singapore-headquartered diversified real estate group CapitaLand has secured Rs 625 crore green loan from DBS Bank India (DBS) to finance the development of phase 1 of its International Tech Park located in Chennai. The Chennai tech park comprises 4.6 million square feet of development potential for premium Grade A office space to cater to 45,000 professionals. The IT park’s first phase will comprise two buildings, offering a net leasable area of 1.25 million square feet for IT and IT-enabled services companies.

The first and second blocks will be operational by the fourth quarter of 2022 and the second quarter of 2024 respectively. When fully developed, it will have amenities such as restaurants, food courts, fitness centre, clinic, childcare centre and event spaces.

The loan for Chennai project is part of the CapitaLand’s first three green loans in India, totalling Rs 1,700 crore from DBS Bank India (DBS) and the Hong Kong and Shanghai Banking Corporation India (HSBC India). The three green loans mark CapitaLand’s first foray in sustainable finance in India. Apart from the Chennai project, green loans will be used to finance the development of its green-certified International Tech Parks in Gurgaon and Pune.

A Rs 425 crore green loan provided by DBS will be used to finance the development of phase 1 of International Tech Park Gurgaon while a Rs 650 crore loan provided by HSBC India will be used to finance the development of International Tech Park Pune, Kharadi.

Vinamra Srivastava, CEO, business parks, CapitaLand India, said: “The securing of the first green loans in India demonstrates CapitaLand’s commitment to responsibly growing our business as we create long-term value for our stakeholders. We are glad to work with like-minded partners such as DBS and HSBC who support CapitaLand’s aim to develop greener buildings while continuing to contribute to the environmental and social well-being of our communities.”