City Developments Secures First Loan in Support of 1.5°C Climate Goal

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City Developments ($SGX:C09) (CDL) has secured its first loan in support of the 1.5°C global climate goal. The loan, provided by OCBC and the Climate Bonds Taxonomy, is part of the pioneering effort to finance green projects and activities. This marks a significant milestone for the Singapore-headquartered real estate developer, the only Southeast Asian issuer to date, as it continues to build a sustainable future. CDL is a well-established real estate developer in Singapore and one of the city-state’s leading public listed companies.

It also has operations in the United Kingdom, China, Japan, Vietnam and Malaysia. The OCBC 1.5°C loan will enable CDL to finance green projects and activities that align with the 1.5°C global climate goal. This includes energy efficiency improvements, renewable energy initiatives and green buildings that are certified under the Singapore Green Building Council’s Green Mark scheme.

Share Price

The loan also demonstrates CDL’s commitment to providing sustainable solutions for its clients and stakeholders. The news sent CDL’s shares to an all-time high, with its stock opening at SG$6.1 and closing at SG$6.2, up by 1.5% from the previous closing price of 6.1. The announcement has been enthusiastically welcomed by investors, with many expressing their confidence in CDL’s approach to environmentally friendly development and sustainability. This new loan highlights the importance of recognizing the need for rapid climate action to help protect our planet and its people.

It also showcases CDL’s determination to drive positive change in the real estate industry and ensure that all their developments are designed with the 1.5°C goal in mind. This is an important step towards achieving sustainable development and ensuring a better future for all. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for City Developments. More…

Cash Flow Snapshot

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Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for City Developments. More…

Key Ratios Snapshot

Some of the financial key ratios for City Developments are shown below. More…

Analysis

GoodWhale has conducted an analysis of CITY DEVELOPMENTS‘ fundamentals and found that it is strong in dividend payouts and medium in terms of asset, growth, and profitability. Its health score is moderate with 5/10, considering its cashflows and debt, and may be able to sustain future operations during times of crisis. We categorize CITY DEVELOPMENTS as a ‘cheetah’ type of company, which has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Investors looking for companies with strong dividend payouts and potential for growth may be interested in CITY DEVELOPMENTS. However, it is important to note that due to its lower profitability, it may not be the most stable investment option. Investors should assess the risks associated with investing in CITY DEVELOPMENTS before making a decision. More…

Peers

The company is engaged in the development, ownership, and management of properties in Singapore and around the world. City Developments is one of Singapore’s largest property developers by market capitalization, and it is also one of the country’s oldest property developers, with a history dating back to 1963. The company’s portfolio includes residential, commercial, retail, hospitality, and industrial properties. City Developments’ competitors include Redsun Properties Group Limited, Leading Holdings Group Limited, and UOL Group Limited.

– Redsun Properties Group Ltd ($SEHK:01996)

Redsun Properties Group Ltd is a leading property development company in Hong Kong with a market cap of 1.37B as of 2022. The company has a strong focus on developing high quality residential, commercial and mixed-use projects. It has a proven track record in delivering quality projects on time and on budget. The company’s return on equity (ROE) is 11.22%.

– Leading Holdings Group Ltd ($SEHK:06999)

Leading Holdings Group Ltd is a Chinese conglomerate with a market cap of 248.52M as of 2022. The company has a Return on Equity of 10.6%. Leading Holdings Group Ltd is involved in a variety of businesses, including real estate, construction, and hospitality. The company has a strong presence in China and is expanding its operations into other countries.

– UOL Group Ltd ($SGX:U14)

UOL Group Ltd is a real estate investment holding company based in Singapore. The Company’s businesses include property development and investment, hotel ownership and management, and the provision of management services. The Company’s segments include Property development, Property investment, Hotel ownership and management, and Others.

The Company’s property development business includes the development of residential, commercial, and industrial properties. The Company’s property investment business includes the investment in income-producing real estate assets, such as office buildings, shopping malls, serviced apartments, and hotels. The Company’s hotel ownership and management business includes the ownership and management of a portfolio of hotels in Singapore, Vietnam, and Australia. The Company’s other businesses include the provision of management services.

Summary

City Developments Limited (CDL) has recently secured the first OCBC 1.5°C loan, a pioneering green loan that is the first of its kind in Singapore. The loan supports CDL in its commitment to reduce carbon emissions and promote a sustainable environment. This loan is an important step towards CDL’s long-term goal of becoming a carbon neutral real estate developer.

Analysts believe that this move further strengthens CDL’s position as a leader in sustainability and positions the company to benefit from the increased focus on sustainability among investors. CDL’s commitment to sustainability is expected to continue to be a significant factor in its long-term success.