In a move highlighting the growing integration of biodiversity goals into mainstream corporate finance, DBS and City Developments Limited ( CDL ) have launched a S$300 million ( US$234 million ) multi-currency sustainability-linked loan ( SLL ) to accelerate nature-based urban development initiatives in Singapore.

The facility marks the second financing partnership between the two parties tied to nature-related targets, following CDL’s landmark Taskforce on Nature-related Financial Disclosures ( TNFD )-aligned SLL launched in 2024.

Structured in accordance with sustainability-linked loan principles, the latest financing package introduces a broader set of sustainability performance targets focused on climate resilience, biodiversity conservation, and resource efficiency.

These include expanding urban farming initiatives, increasing the development of micro-forests mainly using native species, improving stakeholder engagement on climate and nature issues, adopting circular materials, and enhancing water efficiency.

CDL says the facility builds on more than S$11 billion in sustainable financing secured since 2017 as the developer continues to embed sustainability targets into its long-term financing framework.

Sustainability finance firsts

The transaction also aligns with Singapore’s Green Plan 2030 and reflects how sustainability-linked finance is evolving beyond carbon reduction metrics to incorporate wider environmental and ecosystem outcomes.

“Sustainable financing is both a catalyst for growth and an important enabler in accelerating the transition towards a low-carbon and more climate-resilient future,” says CDL group chief financial officer Yiong Yim Ming. “This latest SLL reflects the next evolution of our sustainability journey, embedding measurable nature-based targets into our financing framework and further aligning our financial strategy with environmental outcomes.

 “As a developer, real estate can play an important role in advancing climate action and shaping a greener, more resilient and more liveable urban environment,” she adds.

DBS says the facility demonstrates how banking expertise can be deployed to support clients transitioning towards more sustainable business models while creating broader environmental and social benefits.

The partnership between DBS and CDL has produced several sustainability finance firsts in Singapore over the past decade.

DBS supported CDL’s inaugural green bond issuance in 2017, the first by a Singaporean company, and later backed Singapore’s first Sustainable Development Goals Innovation loan in 2019 to fund CDL’s DigiHUB smart building management platform.

More recently, DBS partnered with CDL on its SME Supplier Queen Bee Programme, which helps smaller businesses decarbonize operations and improve Scope 3 emissions reporting and carbon accounting capabilities.