UNITED Industrial Corporation Limited (UIC) announced on Monday that it has secured its first green and sustainability-linked loans amounting to S$300 million from UOB and DBS. They include a S$200 million sustainability-linked loan and a S$100 million green loan.

The green loan will be used to fund major upgrading works at the Singapore Land Tower, which is owned by UIC.

Estimated to be completed by 2023, UIC said the upgrading will introduce more green features to the 39-year-old building, which received the Building and Construction Authority's Green Mark GoldPlus certification in 2020.

Singapore Land Tower, with average occupancy of over 94 per cent, will remain a live building during the two-year refurbishment period, said UIC.

Meanwhile, the S$200 million loan will be used to refinance existing facilities as well as for general corporate purposes.

Both loans, issued on a 50-50 basis by DBS and UOB, are three-year credit-revolving facilities which allow UIC to draw down or withdraw, repay, and withdraw again within three years.

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Chew Chong Lim, managing director and group head of real estate, institutional banking, DBS, said: "We have observed an increased interest in sustainable financing over the past year, and this presents fresh opportunities for us to forge meaningful partnerships to help companies balance business outcomes with meeting the needs of the environment and society."

Jonathan Eu, UIC's chief operating officer, said: "As we strive towards becoming a more responsible business, we will place a greater focus on key ESG factors that positively impact UIC's stakeholders."