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

CapitaLand Investment (CLI) has already raised RMB1 billion ($187.1 million) from its inaugural sustainability-linked panda bond from institutional investors. The subscription rate was 1.65 times.

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

“The panda bond also combines our financing efforts with CLI’s sustainability effectiveness, illustrating our focus on accountable development. This most current campaign to get the large residential capital market in China assists minimize foreign exchange changes and belongs to our ongoing prudent capital administration,” he includes.

Provided under CLI’s RMB2 billion financial obligation issuance programme, the panda bond is connected to CLI’s intended of reducing its energy consumption magnitude by at the very least 6% for its Chinese real properties.

J’Den Condo Capitaland

“The effective first appearance of our first panda bond shows the confidence that institutional financiers possess in CLI’s established track record and lasting development leads in China. It makes it possible for CLI to expand our funds resources and grow our monetary flexibility,” states Puah Tze Shyang, Chief Executive Officer of CLI (China).

The bond has allowed the team to connect to lower-cost RMB resources and more broaden its local funding networks and buyer base.

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

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