CapitaLand Investment raises RMB1 bil from first sustainability-linked panda bond
The bond has actually enabled the team to gain access to lower-cost RMB capital and more expand its local financing channels and real estate investor base.
Released held down CLI’s RMB2 billion financial obligation issuance program, the panda bond is linked to CLI’s target of lowering its electricity usage intensity by at least 6% for its Chinese real properties.
Net profits from the issuance are going to be used to refinance CLI’s occurring credits.
“The panda bond additionally combines our funding initiatives with CLI’s sustainability efficiency, showing our focus on accountable improvement. This most current initiative to tap the big domestic capital market in China allows minimize foreign exchange inconstancies and belongs to our recurring prudent funding monitoring,” he includes.
The panda bond, that is the 1st to be given by a Singapore company, has a three-year tenor and a fixed coupon rate of 3.5% per annum.
CapitaLand Investment (CLI) has recently boosted RMB1 billion ($187.1 million) from its inaugural sustainability-linked panda bond from institutional investors. The subscription rate was 1.65 times.
“The successful launching of our very first panda bond demonstrates the assurance that institutional financiers have in CLI’s recognized performance history and lasting expansion prospects in China. It enables CLI to expand our funding resources and increase our economic flexibility,” says Puah Tze Shyang, Chief Executive Officer of CLI (China).
