Ascott Residence Trust issues $200 mil sustainability-linked bond


“Sustainability is core to everything we do at ART. Straightening our financing needs with our sustainability initiatives to construct a greener portfolio demonstrates ART’s emphasize liable development,” says Beh Siew Kim, Chief Executive Officer of ART. “Since 31 Dec 2021, 33% of ART’s profile is green-certified and we focus on to environment-friendly the remainder 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 grow in April 2027 as well as bring a fixed discount price of 3.63% per year, paid semi-annually in arrears.

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Ascott Residence Trust (ART) has released a $200 million sustainability-linked bond, making it the initial Singapore-listed realty trust as well as the first hospitality trust worldwide to release such a bond.

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 difficulty being upsized from $150 million to $200 million. The last orderbook shut at $335 million with orders from throughout 47 accounts. In terms of financier allocation, 79% of the bond issuance headed to institutional financiers, while personal banking investors represented 21%.

Last year, ART acquired the very first hospitality trust eco-friendly loan in Singapore, which was made use of to finance its maiden growth job – lyf one-north, a co-living property certified with Green Mark GoldPLUS by the Building and Construction Authority of Singapore.

According to ART, the issuance of the sustainability-linked bond has netted the trust a green premium, or “greemium”, which describes the reduced expense of funding from providing debt that has a positive environmental impact as contrasted to traditional bonds. ART has also devoted to a sustainability performance intended of greening 50% of its overall profile by 2025. To attain this, the residential properties need to acquire a regionally, nationally or internationally identified environmental building specification or certification by an identified third-party.

Proceeds from the bond issuance are going to be utilized to re-finance ART’s existing loanings. DBS Bank is the sole lasting financing adviser, lead manager and bookrunner for the transaction.


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