Ascott Residence Trust issues first sustainability-linked bond of $200m

This is the first sustainability-linked bond by a Singapore-listed real estate trust.

Real estate trust, Ascott Residence Trust (ART), has issued a first sustainability-linked bond of $200m, which is due for maturity in 2027.

The bond, the first sustainability-linked bond by a Singapore-listed real estate trust, also received strong demand from institutional investors after it logged 2.2 times oversubscription.

It was issued following ART’s $2b multicurrency debt issuance programme. The proceeds from the issuance will be used to refinance ART’s existing borrowings. 

The bond also has a fixed coupon rate of 3.63% per annum, which will be paid semi-annually in arrears. 

ART achieved a “greenium” through the issuance of sustainability-linked bonds and committed to a sustainability performance target of greening 50% of its total port by end of 2025.

As for investor distribution, 79% of the bond was earmarked to institutional accounts and 21% to private banking accounts.