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

The panda bond, which is the 1st to be given by a Singapore business, has a three-year tenor and a fixed discount price of 3.5% per annum.

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

“The effective launch of our first panda bond shows the reliance that institutional clients have in CLI’s recognized track record and long-lasting progress leads in China. It allows CLI to branch out our funds resources and raise our monetary ability,” claims Puah Tze Shyang, CEO of CLI (China).

“The panda bond additionally integrates our funding attempts with CLI’s sustainability performance, showing our emphasis on responsible improvement. This latest campaign to tap the large domestic capital industry in China enables reduce foreign exchange inconstancies and is part of our continuous sensible capital monitoring,” he includes.

The bond has made it possible for the team to connect to lower-cost RMB resources and more broaden its local funding channels and investor base.

Provided under CLI’s RMB2 billion financial debt issuance programme, the panda bond is connected to CLI’s intended of reducing its electricity consumption intensity by a minimum of 6% for its Chinese properties.

Net earnings from the issuance are going to be utilized to re-finance CLI’s occurring borrowings.