CDL and DBS Launch S$300 Million Sustainability-Linked Loan Tied to Nature-Based Urban Targets

City Developments Limited has secured a new S$300 million multi-currency sustainability-linked loan from DBS Bank to accelerate the adoption of nature-based urban development solutions in Singapore, with performance targets covering urban farming, biodiversity conservation, circularity and water efficiency. The facility builds on CDL's pioneering Taskforce on Nature-related Financial Disclosures targets-aligned SLL launched with DBS in 2024 and forms part of the company's broader strategy to integrate biodiversity and ecosystem considerations directly into corporate finance. The loan will be used for general corporate funding and working capital purposes, including asset redevelopment and sustainability initiatives, supporting Singapore's transformation into a City in Nature under the country's Green Plan 2030.

 

Scope of the Sustainability-Linked Loan

 

The new SLL has been structured in line with Sustainability-Linked Loan Principles and introduces a comprehensive suite of sustainability performance targets focused on strengthening climate and nature resilience in urban systems. The targets include scaling urban farming initiatives, establishing and expanding microforests with predominantly native species, enhancing stakeholder engagement on climate and nature, adopting circular materials in CDL developments, and improving water efficiency across the property portfolio. The breadth of the targets reflects an integrated approach that addresses multiple dimensions of nature-positive urban development simultaneously.

The structure links the cost of financing to CDL's progress against these measurable nature-based outcomes, creating direct financial incentives for the company to deliver on its sustainability commitments. Performance against the targets will determine adjustments to loan pricing over the facility's term, embedding accountability into the financing relationship. This mechanism is particularly significant for nature-related targets, where credible measurement frameworks have historically lagged behind those used for carbon emissions.

 

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CDL's Sustainable Finance Track Record

 

Yiong Yim Ming, Group Chief Financial Officer at CDL, said the company has secured over S$11 billion in sustainable financing since 2017 to support its net zero ambitions while delivering long-term value through sustainable development. She emphasised that sustainable financing acts both as a catalyst for growth and as an important enabler in accelerating the transition toward a low-carbon, climate-resilient future. The framing positions sustainable finance as central to the company's commercial strategy rather than as a peripheral funding source.

Yiong described the latest SLL as the next evolution of CDL's sustainability journey, embedding measurable nature-based targets into the financing framework and further aligning financial strategy with environmental outcomes. She also noted that real estate developers have an important role in advancing climate action and shaping greener, more resilient and more liveable urban environments. The leadership position taken by CDL on TNFD-aligned financing has helped establish Singapore as one of the more advanced markets for nature-related corporate finance globally.

 

DBS Perspective and Banking Relationship

 

Chew Chong Lim, Group Head of Real Estate at DBS Institutional Banking Group, said the real estate sector plays a critical role in building a more sustainable future and that supporting clients in this work is a core responsibility for the bank. He noted that the latest facility demonstrates how industry expertise, structuring capabilities and sustainability knowledge can come together through financing to enable more resilient urban spaces. The framing positions the relationship as collaborative rather than purely transactional.

The deepening partnership between CDL and DBS also signals the maturation of sustainable finance capabilities at one of Asia's largest banks. As more property developers seek to align their financing with nature-related performance, lenders with proven structuring capabilities in this area are positioned to capture growing demand. The relationship between CDL and DBS provides a template for how leading Asian banks can develop differentiated sustainable finance offerings tied to nature outcomes.

 

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Long-Standing Partnership Milestones

 

This latest SLL builds on a long-standing sustainable finance partnership between CDL and DBS that has produced several Singapore sustainability financing firsts over the past decade. In 2024, CDL secured the first TNFD targets-aligned SLL with DBS, establishing an early-mover position in nature-linked corporate finance. DBS also supported CDL's landmark green bond issuance in 2017, which was the first by a Singapore company and helped establish the local green bond market.

The partnership has continued to break new ground with the 2019 issuance of Singapore's first Sustainable Development Goals Innovation Loan, which was used to pilot DigiHUB, CDL's in-house digital platform for enhancing building management efficiency. DBS is also the financial partner for CDL's SME Supplier Queen Bee Programme, which supports small and medium-sized enterprises in decarbonising and managing Scope 3 emissions through improved carbon accounting and reporting. The combined track record demonstrates how a sustained relationship between a corporate borrower and a banking partner can systematically advance sustainable finance markets.

 

Outlook for Nature-Linked Urban Finance

 

The CDL and DBS transaction reinforces a broader trend in which nature-related performance is becoming a core dimension of corporate financing in property and urban development markets. As the TNFD framework gains adoption across Asia Pacific and globally, financial institutions are developing the analytical capabilities needed to price nature-related risk and performance into lending terms. Sustainability-linked loans tied to nature targets are expected to become a more meaningful share of the broader sustainable finance market over the coming years.

Whether the model pioneered by CDL can be replicated more widely across Asia will depend on the availability of credible nature-related metrics, the willingness of banks to invest in supporting infrastructure, and the broader policy framework encouraging nature-positive corporate activity. Sustained execution would establish CDL as a benchmark for how property developers can embed nature into corporate strategy while accessing competitive sustainable financing. The next phase of urban sustainability finance is likely to be defined by nature alongside climate as a core dimension of credible corporate sustainability.

 

Source: City Developments Limited (CDL)