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

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

The panda bond, that is the initial to be given by a Singapore business, has a three-year course and a fixed promotion rate of 3.5% per year.

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“The successful first appearance of our initial panda bond shows the assurance that institutional financiers have in CLI’s established performance history and long-term expansion prospects in China. It makes it possible for CLI to expand our funding resources and grow our monetary compliance,” says Puah Tze Shyang, Chief Executive Officer of CLI (China).

Issued covered by CLI’s RMB2 billion debt issuance program, the panda bond is associated to CLI’s target of lowering its energy usage intensity by at the very least 6% for its Chinese real estates.

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

The bond has actually enabled the team to access lower-cost RMB funding and further increase its domestic financing networks and investor base.

“The panda bond likewise combines our funding efforts with CLI’s sustainability performance, showing our emphasize accountable improvement. This latest effort to tap the big residential financing market in China enables alleviate foreign exchange inconstancies and belongs to our continuous sensible funding monitoring,” he adds.