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The first distribution rate reset will be on 17 September 2025, with subsequent resets every five years thereafter. Photo: Ascendas-reit
Ascendas Real Estate Investment Trust (Ascendas REIT) has priced its $300 million green subordinated perpetual securities at an initial distribution rate of 3% per annum, revealed the REIT’s manager on Thursday (10 September).
Asia’s first real estate green perpetual securities, the securities are issued under the $7 billion euro medium-term securities programme of Ascendas REIT.
The first distribution rate reset will be on 17 September 2025, with subsequent resets every five years thereafter.
The REIT’s manager noted that the distribution will be “payable semi-annually in arrear on a discretionary basis”.
It added that the orderbook was in excess of $725 million across 57 accounts.
The securities mark the second green issuance under the green finance framework of Ascendas REIT, which was prepared in accordance with the Green Loan Principles (2020) and the Green Bond Principles (2018).
OCBC served as the sole lead manager, green finance adviser and bookrunner for this transaction.
“This is the second Green financing instrument we have issued this year that is backed by 17 BCA Green Mark Platinum and GoldPlus properties in the Ascendas Reit portfolio. We will not stop here,” said William Tay, Chief Executive Officer and Executive Director of the REIT’s Manager.
“We will be incorporating more “Green” initiatives into our core business strategy, for example in the areas of financing, property development and asset improvements. This is an important commitment on our part to contribute to conserving the environment.”
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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