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

The bond has actually allowed the team to connect to lower-cost RMB capital and even more expand its domestic funding networks and investor base.

“The outstanding first appearance of our initial panda bond demonstrates the assurance that institutional financiers possess in CLI’s well established track record and long-term development prospects in China. It allows CLI to branch out our funds resources and grow our financial compliance,” claims Puah Tze Shyang, CEO of CLI (China).

“The panda bond also incorporates our funding campaigns with CLI’s sustainability efficiency, showing our highlight accountable growth. This latest campaign to touch the sizeable residential financing market in China enables mitigate foreign exchange changes and becomes part of our continuous sensible capital monitoring,” he adds.

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CapitaLand Investment (CLI) has recently boosted RMB1 billion ($187.1 million) from its first sustainability-linked panda bond from institutional investors. The registration price was 1.65 times.

Provided under CLI’s RMB2 billion debt issuance programme, the panda bond is linked to CLI’s focused of lowering its electricity usage magnitude by at the very least 6% for its Chinese properties.

The panda bond, that is the first to be provided by a Singapore company, has a three-year tenor and a fixed promotion rate of 3.5% per annum.

Net profits from the issuance will most likely be used to refinance CLI’s remaining loans.