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 and also carry a repaired coupon price of 3.63% per annum, paid semi-annually behind.
Ascott Residence Trust (ART) has recently released a $200 million sustainability-linked bond, making it the initial Singapore-listed real estate trust and also the very first hospitality trust around the world to issue such a bond.
Earnings from the bond issuance are going to be utilized to refinance ART’s existing loanings. DBS Bank is the sole lasting money advisor, lead manager and also bookrunner for the deal.
In 2021, ART received the first hospitality trust green finance in Singapore, which was used to fund its initial development job – lyf one-north, a co-living building accredited with Green Mark GoldPLUS by the Building and Construction Authority of Singapore.
According to ART, the issuance of the sustainability-linked bond has actually netted the trust a green premium, or “greemium”, which describes the reduced expense of financing from issuing financial debt that has a positive natural impact as compared to typical bonds. ART has also devoted to a sustainability performance aim for of greening 50% of its complete portfolio by 2025. To attain this, the residences have to obtain a regionally, nationally or internationally acknowledged environmental structure requirement or certification by an identified third-party.
” Sustainability is core to everything we do at ART. Straightening our financing requires with our sustainability initiatives to construct a greener portfolio demonstrates ART’s concentrate on responsible growth,” claims Beh Siew Kim, Chief Executive Officer of ART. “Since 31 Dec 2021, 33% of ART’s profile is green-certified as well as we target to eco-friendly the rest of our portfolio by 2030.”
In an April 20 press release, ART says the bargain was oversubscribed by 2.2 times on the back of strong need, resulting in the bond difficulty being upsized from $150 million to $200 million. The final orderbook shut at $335 million with orders from throughout 47 accounts. In regards to capitalist allocation, 79% of the bond issuance headed to institutional capitalists, while personal financial investors made up 21%.