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 develop in April 2027 and carry a fixed coupon rate of 3.63% per annum, paid semi-annually behind.

Ascott Residence Trust (ART) has provided a $200 million sustainability-linked bond, making it the first Singapore-listed realty trust and the first hospitality trust worldwide to issue such a bond.

Profits from the bond issuance will definitely be used to refinance ART’s existing loanings. DBS Bank is the single sustainable financing consultant, lead supervisor as well as bookrunner for the deal.

According to ART, the issuance of the sustainability-linked bond has netted the trust a green premium, or “greemium”, which refers to the lower price of financing from providing financial debt that has a positive ecological effect as compared to standard bonds. ART has even committed to a sustainability efficiency aim for of greening 50% of its total profile by 2025. To attain this, the properties should obtain a regionally, nationally or internationally acknowledged green building specification or certification by an acknowledged third-party.

Sceneca Residences Singapore

Last year, ART received the very first hospitality trust green loan in Singapore, which was used to finance its first advancement task – lyf one-north, a co-living realty licensed with Green Mark GoldPLUS by the Building and Construction Authority of Singapore.

In an April 20 news release, ART says the offer was oversubscribed by 2.2 times on the back of strong need, causing the bond issue being upsized from $150 million to $200 million. The last orderbook shut at $335 million with orders from across 47 accounts. In terms of financier allowance, 79% of the bond issuance went to institutional investors, while exclusive financial capitalists represented 21%.

” Sustainability is primary to everything we do at ART. Aligning our financing requires with our sustainability efforts to develop a greener portfolio shows ART’s focus on accountable development,” states Beh Siew Kim, CEO of ART. “As of 31 Dec 2021, 33% of ART’s profile is green-certified and we aim at to green the remainder of our portfolio by 2030.”

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