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

Provided under CLI’s RMB2 billion financial obligation issuance programme, the panda bond is associated to CLI’s target of lowering its electricity usage magnitude by at least 6% for its Chinese properties.

The panda bond, which is the 1st to be provided by a Singapore company, has a three-year tenor and a fixed coupon rate of 3.5% per annum.

Marina View Residences floor plan

Net profits from the issuance will be applied to re-finance CLI’s remaining borrowings.

The bond has actually enabled the team to connect to lower-cost RMB resources and even more expand its local financing channels and investor base.

“The panda bond likewise combines our funding campaigns with CLI’s sustainability effectiveness, showing our emphasize responsible improvement. This most current effort to get the big residential financing market in China helps reduce foreign exchange changes and is part of our recurring prudent funding administration,” he adds.

CapitaLand Investment (CLI) has already increased RMB1 billion ($187.1 million) from its debut sustainability-linked panda bond from institutional clients. The registration price was 1.65 times.

“The outstanding debut of our very first panda bond demonstrates the reliance that institutional investors possess in CLI’s established performance history and long-term development prospects in China. It enables CLI to diversify our funding sources and escalate our financial versatility,” claims Puah Tze Shyang, CEO of CLI (China).