Royal group inks world's first Islamic green financing pact

The financing is for the upcoming Raffles Sentosa Resort and Spa Singapore and the existing Sofitel Singapore Sentosa Resort and Spa.

In a joint statement with Maybank Singapore today, co-chairman of Royal Group, Bobby Hiranandani said this was the first time that a hospitality developer and owner has embarked on Islamic green financing.

"Being Shariah-compliant is not only about going the sustainable route, but also in being ethical in our approach in building and managing both properties," he said.

Maybank Singapore's head of Global Banking, Gregory Seow said the bank is at the forefront of developing innovative financing solutions to fund new projects and ventures in sustainability solutions and contribute towards building sustainable communities.

"What stood out in Shariah-compliant financing is that it benefits the customers through its product features as well as grant them access to a wider customer or investor base," he said.

Seow noted that moving forward, the bank expects to see a greater convergence between the products and services offered under both the conventional and Islamic banking systems premised on Environmental, Social and Corporate Governance.

Maybank Singapore has a strong track record in arranging and participating in sustainability-linked loans and green loans, totalling S$4.5 billion, to-date.