SINGAPORE (REUTERS) - City Developments Ltd (CDL) is marketing on Thursday (April 6) the first Green bond offering in Singapore.

The property company is offering a Singapore dollar two-year Green bond indicated at a 1.98 per cent coupon, with pricing expected later on Thursday.

The unrated bond is secured against Republic Plaza, which has scored a green mark platinum from Singapore's state agency Building and Construction Authority. The office complex is located in the heart of financial and commercial district Raffles Place.

This is the first time that a Green bond is being offered in the Singapore dollar bond market, offering a test of local investor appetite for this type of asset.

Under one of the financial covenants, CDL is required to maintain a net worth of not less than S$240 million .

Proceeds are for the repayment of a loan extended by City Developments to issuer CDL Properties. The loan was used to retrofit and upgrade the office building to maintain the green mark platinum level.

DBS is sole bookrunner and structuring adviser, with Sustainalytics providing second party opinion. KPMG was the independent limited assurance provider.