CapitaLand Investment raises RMB1 bil from first sustainability-linked panda bond

The bond has actually enabled the team to access lower-cost RMB capital and even more expand its domestic funding channels and investor base.

The panda bond, that is the initial to be provided by a Singapore business, has a three-year tenor and a fixed discount rate of 3.5% per annum.

Provided covered by CLI’s RMB2 billion liability issuance programme, the panda bond is linked to CLI’s intended of decreasing its power consumption intensity by at the very least 6% for its Chinese real properties.

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“The panda bond additionally incorporates our funding initiatives with CLI’s sustainability performance, illustrating our highlight liable growth. This most recent effort to touch the big residential capital industry in China allows mitigate foreign exchange changes and belongs to our ongoing prudent capital administration,” he adds.

CapitaLand Investment (CLI) has already built up RMB1 billion ($187.1 million) from its first sustainability-linked panda bond from institutional investors. The subscription price was 1.65 times.

Net profits from the issuance will most likely be utilized to refinance CLI’s occurring borrowings.

“The outstanding debut of our first panda bond shows the confidence that institutional clients possess in CLI’s recognized performance history and long-lasting development prospects in China. It enables CLI to diversify our capital sources and escalate our monetary ability,” states Puah Tze Shyang, Chief Executive Officer of CLI (China).

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