Ascott Residence Trust issues $200 mil sustainability-linked bond

Earnings from the bond issuance will be spent to re-finance ART’s existing loanings. DBS Bank is the single sustainable finance advisor, lead supervisor and bookrunner for the transaction.

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 expense of funding from issuing financial debt that has a positive environmental effect as compared to conventional bonds. ART has even committed to a sustainability efficiency target of greening 50% of its complete portfolio by 2025. To achieve this, the buildings need to acquire a regionally, nationally or internationally identified environment-friendly building benchmark or qualification by an acknowledged third-party.

In an April 20 press release, ART says the bargain was oversubscribed by 2.2 times on the back of solid demand, resulting in the bond issue being upsized from $150 million to $200 million. The final orderbook shut at $335 million with orders from across 47 accounts. In regards to investor appropriation, 79% of the bond issuance headed to institutional financiers, while personal banking investors accounted for 21%.

The M Condo Singapore

Last year, ART obtained the first hospitality trust eco-friendly finance in Singapore, which was utilized to fund its maiden advancement job – lyf one-north, a co-living building accredited with Green Mark GoldPLUS by the Building and Construction Authority of Singapore.

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

” Sustainability is origin to whatever we do at ART. Straightening our funding needs with our sustainability efforts to construct a greener profile demonstrates ART’s focus on accountable development,” says Beh Siew Kim, CEO of ART. “As of 31 Dec 2021, 33% of ART’s portfolio is green-certified and also we focus on to eco-friendly the rest of our portfolio by 2030.”

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 is going to develop in April 2027 as well as hold a fixed discount rate of 3.63% per annum, paid semi-annually behind.

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