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

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

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

Provided under CLI’s RMB2 billion financial debt issuance program, the panda bond is linked to CLI’s intended of lowering its energy consumption intensity by at the very least 6% for its Chinese residences.

The bond has actually enabled the group to access lower-cost RMB resources and even more broaden its local financing channels and investor base.

“The effective launch of our initial panda bond demonstrates the trust that institutional investors have in CLI’s well established performance history and lasting progress leads in China. It makes it possible for CLI to expand our capital sources and escalate our financial versatility,” says Puah Tze Shyang, CEO of CLI (China).

Lentoria Hong Leong Group & Mitsui Fudosan

“The panda bond also combines our financing efforts with CLI’s sustainability efficiency, showing our focus on accountable growth. This newest initiative to get the big residential financing industry in China enables minimize foreign exchange fluctuations and becomes part of our recurring prudent funding monitoring,” he includes.

Net proceeds from the issuance will be used to re-finance CLI’s existing borrowings.