Allianz Real Estate and Gaw Capital have obtained a S$945m (€626.6m) green loan from three of Singapore’s largest banks to help fund the S$1.6bn acquisition of DUO Tower and DUO Galleria in Singapore.

United Overseas Bank (UOB), DBS Bank and Standard Chartered Bank (Singapore), acting as green loan advisers, underwrote the green loan.

Rushabh Desai, CEO of Allianz Real Estate Asia Pacific, said: “Through green loans, we find yet another path to investing responsibly while strengthening our relationships with like-minded business partners.”

Desai said sustainable factors had a strong influence on the way that Allianz Real Estate acquired and managed its buildings.

Lim Lay Wah, UOB’s global head of financial institutions group, said the real estate sector had been leading the charge in demand for green financing, with more property owners, managers and financial sponsors upholding sustainability standards as part of their climate action efforts.

”We are encouraged by the steady traction in green and sustainability-linked loans from the real estate industry, and continue to seek meaningful partnerships with like-minded players to advance the collective ambition to build towards a more sustainable future,” said Chew Chong Lim, managing director and global head of real estate with DBS bank, institutional banking group.

Patrick Lee, chief executive officer, Standard Chartered Bank Singapore, said: “We are keen to do more and will seek opportunities to work with partners like Allianz Real Estate and Gaw Capital Partners, who are exhibiting leadership in making a social and environmental impact and raising the bar for green financing in Singapore.”

Lee said Standard Chartered was committed to growing its sustainable finance portfolio in Singapore,and that the bank sought to play a role in directing capital to build a more green and sustainable environment.

“Singapore is fast becoming a hub for green and sustainable loans, with more than US$6bn of loan issuances between 2018 and October 2019,” he said.