Ascott Residence Trust issues $200 mil sustainability-linked bond


According to ART, the issuance of the sustainability-linked bond has actually netted the trust a green premium, or “greemium”, which describes the lower price of financing from releasing debt that has a positive environmental effect as compared to typical bonds. ART has even committed to a sustainability efficiency aim for of greening 50% of its complete profile by 2025. To attain this, the properties should attain a regionally, nationally or internationally acknowledged environmental building standard or qualification by an identified third-party.

In 2021, ART obtained the first hospitality trust environment-friendly loan in Singapore, which was utilized to fund its maiden growth job – lyf one-north, a co-living building licensed with Green Mark GoldPLUS by the Building and Construction Authority of Singapore.

” Sustainability is primary to everything we do at ART. Aligning our financing requires with our sustainability initiatives to construct a greener profile demonstrates ART’s focus on accountable growth,” claims Beh Siew Kim, CEO of ART. “Since 31 Dec 2021, 33% of ART’s portfolio is green-certified and we focus on to green the rest of our portfolio by 2030.”

Ascott Residence Trust (ART) has issued a $200 million sustainability-linked bond, making it the initial Singapore-listed real estate trust and also the initial hospitality trust around the world to issue such a bond.

Pollen Collection condo

The bond was released under ART’s $2 billion Multicurrency Debt Issuance Programme under its newly-established Sustainability-Linked Finance Framework. The five-year bond will develop in April 2027 and bring a repaired discount rate of 3.63% per annum, paid semi-annually behind.

In an April 20 press release, ART states the deal was oversubscribed by 2.2 times on the back of strong need, causing the bond concern being upsized from $150 million to $200 million. The final orderbook shut at $335 million with orders from throughout 47 accounts. In terms of capitalist allowance, 79% of the bond issuance headed to institutional capitalists, while personal financial financiers represented 21%.

Earnings from the bond issuance will definitely be utilized to refinance ART’s existing loanings. DBS Bank is the sole sustainable money adviser, lead supervisor as well as bookrunner for the deal.


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