Ascott Residence Trust issues $200 mil sustainability-linked bond


The bond was released under ART’s $2 billion Multicurrency Debt Issuance Programme under its newly-established Sustainability-Linked Finance Framework. The five-year bond is going to grow in April 2027 as well as carry a repaired discount price of 3.63% per annum, paid semi-annually in arrears.

Ascott Residence Trust (ART) has already issued a $200 million sustainability-linked bond, making it the very first Singapore-listed realty trust and also the initial hospitality trust worldwide to issue such a bond.

Earnings from the bond issuance will definitely be taken to re-finance ART’s existing loanings. DBS Bank is the single lasting financing advisor, lead supervisor and also bookrunner for the deal.

According to ART, the issuance of the sustainability-linked bond has actually netted the trust a green premium, or “greemium”, which refers to the lower expense of funding from providing financial debt that has a favorable ecological influence as compared to traditional bonds. ART has even committed to a sustainability efficiency intended of greening 50% of its complete profile by 2025. To achieve this, the homes must achieve a regionally, nationally or internationally acknowledged green structure specification or certification by an acknowledged third-party.

Perfect Ten Condo Japura Development Pte Ltd

Last year, ART obtained the initial hospitality trust eco-friendly financing in Singapore, which was used to finance its initial growth project – lyf one-north, a co-living building accredited with Green Mark GoldPLUS by the Building and Construction Authority of Singapore.

In an April 20 news release, ART says the offer was oversubscribed by 2.2 times on the back of solid demand, leading to the bond issue being upsized from $150 million to $200 million. The final orderbook closed at $335 million with orders from throughout 47 accounts. In terms of financier appropriation, 79% of the bond issuance went to institutional capitalists, while personal banking financiers made up 21%.

” Sustainability is primary to every little thing we do at ART. Aligning our financing requires with our sustainability initiatives to develop a greener portfolio shows ART’s concentrate on liable development,” says Beh Siew Kim, Chief Executive Officer of ART. “As of 31 Dec 2021, 33% of ART’s portfolio is green-certified as well as we aim at to environment-friendly the rest of our profile by 2030.”


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