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Photo: Ascendas Reit
Ascendas Real Estate Investment Trust (Ascendas REIT) has raised $100 million through its first green bond which will be issued under a newly established green finance framework.
With a fixed coupon rate of 2.65%, the 10-year bond will be issued under its $7 billion Euro Medium Term Securities Programme. The bond’s order book was in excess of $650 million, with orders from across 47 accounts.
In a release, the REIT’s manager revealed that 80% of the green bonds were allocated to insurance companies, asset managers and hedge funds, 11% to banks and corporates and 9% to private banking accounts.
OCBC Bank served as the sole lead manager, bookrunner and green finance adviser for the transaction.
William Tay, Chief Executive Officer and Executive Director of the REIT’s manager, said the launch of the green finance framework reinforces the REIT’s commitment towards the sustainable strategy to improve the environmental performance of its portfolio.
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“The proceeds from our green bonds or loans will allow us to finance green projects that mitigate climate change by reducing greenhouse gas emissions, improving energy efficiency, reducing water consumption or having other positive environmental impact.”
The green bond’s net proceeds will be used to refinance 17 green properties in Ascendas REIT’s portfolio, which were selected based on its framework’s eligibility criteria. These properties include Nexus@one-north, Aperia and ONE@Changi City.
Ascendas Reit owns 34 properties in its Singapore portfolio with BCA Green Mark certifications – which is the biggest number among Singapore Reits.
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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg