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

Issued covered by CLI’s RMB2 billion debt issuance programme, the panda bond is connected to CLI’s focused of reducing its power usage intensity by a minimum of 6% for its Chinese real properties.

“The panda bond also incorporates our financing initiatives with CLI’s sustainability efficiency, demonstrating our highlight responsible improvement. This latest effort to touch the significant residential capital industry in China assists minimize foreign exchange fluctuations and is part of our continuous prudent funding monitoring,” he includes.

Hill House Macly Group, Roxy Holdings, LWH Holdings

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

The bond has actually enabled the team to get access to lower-cost RMB capital and even more expand its domestic financing networks and investor base.

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

Net proceeds from the issuance are going to be used to refinance CLI’s remaining loans.

“The successful debut of our first panda bond demonstrates the trust that institutional investors possess in CLI’s established performance history and long-term expansion prospects in China. It makes it possible for CLI to diversify our capital sources and increase our economic flexibility,” says Puah Tze Shyang, CEO of CLI (China).