Ascott Residence Trust issues $200 mil sustainability-linked bond

According to ART, the issuance of the sustainability-linked bond has actually netted the trust a green premium, or “greemium”, which describes the reduced cost of financing from releasing debt that has a positive environmental influence as contrasted to typical bonds. ART has also dedicated to a sustainability performance intended of greening 50% of its total portfolio by 2025. To accomplish this, the homes have to obtain a regionally, nationally or internationally identified environmental structure benchmark or accreditation by a recognised third-party.

In 2021, ART secured the initial hospitality trust green loan in Singapore, which was utilized to finance its maiden development job – lyf one-north, a co-living building certified with Green Mark GoldPLUS by the Building and Construction Authority of Singapore.

Proceeds from the bond issuance will be used to re-finance ART’s existing borrowings. DBS Bank is the single lasting money consultant, lead supervisor and also bookrunner for the purchase.

The bond was issued under ART’s $2 billion Multicurrency Debt Issuance Programme under its newly-established Sustainability-Linked Finance Framework. The five-year bond is going to develop in April 2027 and also hold a repaired coupon price of 3.63% per year, paid semi-annually behind.

Ascott Residence Trust (ART) has recently issued a $200 million sustainability-linked bond, making it the initial Singapore-listed property trust as well as the initial hospitality trust internationally to release such a bond.

Sky Eden condo floor plan

In an April 20 announcement, ART states the deal was oversubscribed by 2.2 times on the back of solid demand, leading to the bond difficulty being upsized from $150 million to $200 million. The last orderbook shut at $335 million with orders from across 47 accounts. In terms of investor allowance, 79% of the bond issuance headed to institutional financiers, while private banking investors represented 21%.

” Sustainability is fundamental to everything we do at ART. Aligning our funding needs with our sustainability efforts to build a greener profile demonstrates ART’s emphasize liable development,” claims Beh Siew Kim, Chief Executive Officer of ART. “As of 31 Dec 2021, 33% of ART’s portfolio is green-certified and we target to environment-friendly the remainder of our portfolio by 2030.”

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