CapitaLand Investment raises RMB1 bil from first sustainability-linked panda bond
CapitaLand Investment (CLI) has recently boosted RMB1 billion ($187.1 million) from its inaugural sustainability-linked panda bond from institutional financiers. The registration price was 1.65 times.
Net profits from the issuance will most likely be applied to refinance CLI’s remaining loans.
The bond has actually enabled the group to access lower-cost RMB capital and further expand its domestic financing channels and buyer base.
The panda bond, which is the first to be issued by a Singapore company, has a three-year course and a fixed coupon price of 3.5% per annum.
“The outstanding launch of our first panda bond shows the confidence that institutional investors have in CLI’s well established track record and long-term expansion leads in China. It enables CLI to diversify our funding resources and raise our economic flexibility,” claims Puah Tze Shyang, Chief Executive Officer of CLI (China).
Issued held down CLI’s RMB2 billion financial obligation issuance program, the panda bond is linked to CLI’s target of decreasing its electricity consumption magnitude by at least 6% for its Chinese residences.
“The panda bond additionally combines our funding initiatives with CLI’s sustainability performance, displaying our emphasize responsible improvement. This most current campaign to tap the large residential capital market in China helps reduce foreign exchange changes and is part of our ongoing prudent capital administration,” he adds.
