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

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

Net proceeds from the issuance are going to be used to re-finance CLI’s occurring loans.

Issued covered by CLI’s RMB2 billion liability issuance program, the panda bond is connected to CLI’s intended of lowering its energy intake level by at least 6% for its Chinese residences.

“The panda bond additionally combines our funding initiatives with CLI’s sustainability effectiveness, displaying our focus on responsible improvement. This latest campaign to touch the large residential capital industry in China assists minimize foreign exchange changes and is part of our recurring prudent capital management,” he includes.

The Hill @ One North Singapore

The panda bond, which is the initial to be issued by a Singapore company, has a three-year course and a fixed promotion price of 3.5% per annum.

“The successful first appearance of our first panda bond demonstrates the trust that institutional investors possess in CLI’s well established record and long-lasting progress prospects in China. It makes it possible for CLI to expand our capital sources and raise our economic compliance,” claims Puah Tze Shyang, Chief Executive Officer of CLI (China).

The bond has actually enabled the group to get access to lower-cost RMB capital and further increase its domestic funding networks and real estate investor base.