Ascott Residence Trust issues $200 mil sustainability-linked bond
The bond was released under ART’s $2 billion Multicurrency Debt Issuance Programme under its newly-established Sustainability-Linked Finance Framework. The five-year bond will mature in April 2027 as well as hold a fixed discount price of 3.63% per annum, paid semi-annually in arrears.
Last year, ART obtained the first hospitality trust environment-friendly loan in Singapore, which was utilized to finance its first advancement project – lyf one-north, a co-living realty certified with Green Mark GoldPLUS by the Building and Construction Authority of Singapore.
” Sustainability is core to every little thing we do at ART. Aligning our funding requires with our sustainability efforts to construct a greener profile shows ART’s emphasize accountable growth,” claims Beh Siew Kim, Chief Executive Officer of ART. “Since 31 Dec 2021, 33% of ART’s portfolio is green-certified and also we target to eco-friendly the remainder of our portfolio by 2030.”
In an April 20 press release, ART states the bargain was oversubscribed by 2.2 times on the back of strong need, leading to the bond concern being upsized from $150 million to $200 million. The final orderbook closed at $335 million with orders from throughout 47 accounts. In regards to capitalist appropriation, 79% of the bond issuance went to institutional investors, while exclusive financial investors made up 21%.
According to ART, the issuance of the sustainability-linked bond has netted the trust a green premium, or “greemium”, which describes the reduced expense of funding from releasing financial debt that has a favorable environmental influence as contrasted to conventional bonds. ART has even dedicated to a sustainability performance target of greening 50% of its overall profile by 2025. To attain this, the buildings need to achieve a regionally, nationally or internationally acknowledged environment-friendly building requirement or qualification by a recognised third-party.
Ascott Residence Trust (ART) has already released a $200 million sustainability-linked bond, making it the initial Singapore-listed property trust and the initial hospitality trust globally to issue such a bond.
Earnings from the bond issuance will be taken to refinance ART’s existing loanings. DBS Bank is the single sustainable money consultant, lead supervisor and also bookrunner for the transaction.