Ascott Residence Trust issues $200 mil sustainability-linked bond
Profits from the bond issuance are going to be utilized to re-finance ART’s existing borrowings. DBS Bank is the sole lasting money adviser, lead supervisor and bookrunner for the purchase.
In an April 20 announcement, ART claims the offer was oversubscribed by 2.2 times on the back of strong demand, leading to the bond issue being upsized from $150 million to $200 million. The final orderbook shut at $335 million with orders from throughout 47 accounts. In regards to financier appropriation, 79% of the bond issuance headed to institutional capitalists, while exclusive banking financiers represented 21%.
” Sustainability is origin to whatever we do at ART. Aligning our funding requires with our sustainability initiatives to construct a greener profile shows ART’s emphasize accountable growth,” claims Beh Siew Kim, CEO of ART. “Since 31 Dec 2021, 33% of ART’s portfolio is green-certified and we target to green the remainder of our portfolio by 2030.”
Ascott Residence Trust (ART) has issued a $200 million sustainability-linked bond, making it the very first Singapore-listed property trust and the first hospitality trust globally to provide such a 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 also hold a repaired discount price of 3.63% per annum, paid semi-annually in arrears.
In 2021, ART acquired the initial hospitality trust eco-friendly funding in Singapore, which was utilized to finance its initial advancement project – lyf one-north, a co-living residence 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 refers to the lower cost of financing from releasing financial obligation that has a favorable natural effect as compared to conventional bonds. ART has even dedicated to a sustainability efficiency target of greening 50% of its total portfolio by 2025. To attain this, the residences need to acquire a regionally, nationally or internationally acknowledged green building standard or qualification by an identified third-party.