PT Bank SMBC Indonesia Tbk. (SMBC Indonesia) has deployed a green property financing facility to PT SLP Internusa Karawang—a part of Frasers Property Group—along with a finance-blended incentive program, in part to support the government's sustainability efforts.

SLP Internusa Karawang is using the financing to develop a green industrial property at Suryacipta City of Industry in Karawang, West Java. 

The project, which has obtained EDGE Advanced certification, is designed to deliver on-site energy savings of at least 40 percent compared to a standard building. The project also incorporates features such as optimised building envelope, natural ventilation and efficient lighting, helping the customer benefit from lower operating energy costs.

The financing facility is supported by an International Finance Corporation (IFC) blended-finance performance-based incentive under the IFC-UK Market Accelerator for Green Construction (MAGC) Program. The incentive forms part of SMBC Indonesia’s strategic partnership with the IFC, a member of the World Bank Group. 

Through MAGC, IFC plays a catalytic role by enabling SMBC Indonesia to offer targeted incentives that help reduce the upfront costs associated with green building development, thereby accelerating the adoption of sustainable construction practices and deepening the green buildings market.

Under the program, eligible borrowers may receive incentives of up to 4% of the total green financing facility that borrowers can use to finance green building certification and other eligible sustainability-related expenditures. 

The application of the finance-blended incentive demonstrates SMBC Indonesia's commitment to continuously growing with customers in a more meaningful way through collaboration and to support sustainable efforts.

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