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

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

The panda bond, which is the 1st to be provided by a Singapore company, has a three-year tenor and a fixed promotion price of 3.5% per year.

“The panda bond also integrates our financing initiatives with CLI’s sustainability effectiveness, illustrating our highlight accountable improvement. This most current effort to get the considerable domestic capital industry in China assists minimize foreign exchange fluctuations and belongs to our ongoing prudent funding administration,” he includes.

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The bond has allowed the group to gain access to lower-cost RMB resources and even more increase its domestic financing channels and buyer base.

Released held down CLI’s RMB2 billion financial debt issuance program, the panda bond is linked to CLI’s target of decreasing its electricity usage magnitude by a minimum of 6% for its Chinese real properties.

Net profits from the issuance will be applied to re-finance CLI’s existing borrowings.

“The outstanding launching of our very first panda bond shows the trust that institutional financiers possess in CLI’s well established performance history and lasting expansion leads in China. It allows CLI to diversify our funding resources and escalate our monetary flexibility,” states Puah Tze Shyang, Chief Executive Officer of CLI (China).