CCT issues $124m maiden green bond

CapitaLand Commercial Trust (CCT) issued 10 billion yen (S$124 million) in eight-year unsecured bonds yesterday that bear a fixed coupon of 0.729 per cent a year.

This is its first green bond, issued under a new sustainability financing framework set up by CCT's manager to allow the real estate investment trust (Reit) to secure funding from sustainability-centric investors and diversify its funding sources.

Proceeds from the issuance will be used to refinance green buildings in CCT's portfolio, said Mr Kevin Chee, chief executive officer of the manager.

The yen-denominated bond proceeds have been swapped into $124.7 million at a fixed annual interest rate of 2.84 per cent, and will mature on Nov 16, 2027.

The green bonds are also part of CCT's $2 billion multi-currency medium-term note programme established in 2007. They are guaranteed by CCT's trustee.

Seven of the Reit's eight Singapore properties, including Capital Tower, CapitaGreen and the upcoming CapitaSpring, have been certified Green Mark GoldPlus and above by the Building and Construction Authority.

CCT units closed unchanged at $1.97 after the announcement yesterday.

THE BUSINESS TIMES

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A version of this article appeared in the print edition of The Straits Times on December 17, 2019, with the headline CCT issues $124m maiden green bond. Subscribe