NWP Property, a leading consumer infrastructure platform in Indonesia, has secured its inaugural USD Sustainability-Linked Syndicated Loan Facility (SLL) of US$135 million from a group of lenders led by CIMB Bank Singapore. This marks a significant milestone for NWP as they become the frontrunner in adopting sustainable practices within the commercial real estate sector in Indonesia.
NWP owns and operates Indonesia’s largest green-certified commercial real-estate portfolio with nine assets certified by IFC’s EDGE and 1 asset certified by Singapore BCA.
NWP launched its Sustainability-Linked Finance Framework earlier this year to align the company’s financing strategy with its mission to develop and operate a portfolio of sustainable and energy-efficient buildings. The SLL issued under this framework sets predefined sustainability targets for NWP, with the aim of improving the environmental impact of the assets in the portfolio.
The SLL goes beyond green building certifications and focuses on broader sustainability goals, in line with the company’s ESG roadmap and targets for the next 3 to 5 years.
Mr. Dhawal Doshi, Head of Research & ESG at NWP, expressed his enthusiasm about this milestone and said, “The landmark SLL facility marks a pivotal point in our sustainability journey which started several years ago. Our methodical data driven approach to sustainability, meticulously built overtime, has received accolades from various key stakeholders in the industry.
“Sustainable financing from leading financial institutions is a strong recognition of our previous efforts and will propel the team to continue our sustainability journey.”
According to Mr. Nikolaus Dharmawan, Chief Financial Officer at NWP, “Sustainability has been a dominant theme over recent years. This landmark deal is one of the first of its kind for the commercial real-estate sector in Indonesia.
“Our associated framework and commitments in the facility highlight the increasing importance placed by the financial industry on credible and measurable sustainability practices in the real estate sector. We are thankful to CIMB and SGS for their trust and support.”
Mr. Victor Lee, CEO of CIMB Singapore, congratulated NWP and shared that, “As the lead bank and sustainability coordinator, CIMB Singapore is pleased to support NWP in their sustainability journey. This affirms our commitment towards creating value for our clients with solutions, practices and projects that foster sustainable development. We take pride in being the ‘go-to’ bank for our clients and businesses in ASEAN as they take steps to transition towards a more sustainable future.”
Ms. Priyanka Mehta, Head of Sustainability & ESG Services at SGS Singapore, emphasized the importance of NWP’s initiative in driving sustainability within the commercial real-estate sector, stating, “SGS is delighted to support NWP in this facility, which demonstrates the growing importance of sustainable finance in Southeast Asia.
“Our role as Second-Party Opinion provider ensures that NWP’s sustainability framework is robust, and aligned with international standards, providing confidence to CIMB and the wider market.”
NWP is setting a precedent for sustainability business practice in Indonesia. Its pioneering efforts in securing a Sustainability-Linked Loan Facility of this nature and scope underscore the growing importance of sustainability in the real estate landscape, signalling a shift towards more responsible and resilient business practices in Indonesia and beyond.
This landmark collaboration between NWP, CIMB Singapore, and SGS Singapore paves the way for a more sustainable future in the region.
