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 mature in April 2027 and also bring a taken care of coupon price of 3.63% per year, paid semi-annually behind.
In an April 20 news release, ART states the bargain was oversubscribed by 2.2 times on the back of strong demand, resulting in the bond difficulty being upsized from $150 million to $200 million. The final orderbook closed at $335 million with orders from across 47 accounts. In regards to financier appropriation, 79% of the bond issuance went to institutional financiers, while exclusive banking financiers made up 21%.
” Sustainability is foundation to whatever we do at ART. Straightening our funding requires with our sustainability efforts to construct a greener portfolio shows ART’s emphasize responsible development,” says Beh Siew Kim, CEO of ART. “As of 31 Dec 2021, 33% of ART’s profile is green-certified as well as we target to environment-friendly the remainder of our portfolio by 2030.”
In 2021, ART received the very first hospitality trust environment-friendly funding in Singapore, which was utilized to finance its first growth job – lyf one-north, a co-living home accredited 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 lower cost of funding from releasing financial obligation that has a positive ecological influence as compared to conventional bonds. ART has also committed to a sustainability performance aim for of greening 50% of its total portfolio by 2025. To attain this, the homes should obtain a regionally, nationally or internationally acknowledged environmental structure benchmark or certification by a recognised third-party.
Profits from the bond issuance will definitely be taken to re-finance ART’s existing borrowings. DBS Bank is the single lasting finance adviser, lead supervisor and also bookrunner for the transaction.
Ascott Residence Trust (ART) has already issued a $200 million sustainability-linked bond, making it the initial Singapore-listed realty trust as well as the first hospitality trust worldwide to provide such a bond.