DBS issues $72m social loan to Parkway Life REIT to finance eldercare facilities in Japan
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The 10-year social loan is the bank’s first for the healthcare sector, with DBS noting that Japan’s ageing population is hitting record highs, driving critical healthcare demand.
PHOTO: LIANHE ZAOBAO
SINGAPORE – DBS issued an 8.8 billion Japanese yen (S$72 million) social loan to Parkway Life REIT on Feb 20 to finance eldercare facilities in Japan.
The 10-year social loan is the bank’s first for the healthcare sector, with DBS noting that Japan’s ageing population is hitting record highs, driving critical healthcare demand.
Social loans are financing instruments that fund projects which directly aim to address or mitigate a specific social issue and seek to achieve positive social outcomes.
Such loans are repaid with interest over a fixed term, just like a conventional loan.
It marks Parkway Life REIT’s first social loan under its newly established sustainable finance framework, which DBS helped develop in line with international principles and guidelines.
The framework outlines how the real estate investment trust will allocate funds to eligible green and social projects across its portfolio in Singapore, Japan and Europe.
These projects include enhancements to healthcare and eldercare infrastructure, as well as energy-efficiency upgrades.
“The framework enables us to channel capital towards assets that deliver meaningful environmental and social outcomes while creating sustainable value for our stakeholders,” said Mr Yong Yean Chau, chief executive and executive director of Parkway Trust Management, which manages the REIT.
The impact of the social loan will be measured in terms of the number of nursing homes financed, as well as the number of individuals benefiting from Parkway Life REIT programmes and initiatives.
Dr Eugene Hong, DBS head of healthcare and pharmaceuticals, said: “As demand for healthcare infrastructure rises, directing capital towards assets and services that strengthen social resilience – while meeting internationally recognised sustainable finance principles – is increasingly part of how the sector grows responsibly. This is how sustainability commitments can translate into tangible outcomes on the ground.”
In April 2025, DBS Hong Kong announced a HK$5 billion (S$812 million) sustainability-linked loan and social loan with property developer Henderson Land to support sustainable development and community projects.
