Ascendas Real Estate Investment Trust announced this week that it had raised S$100 million through its first green bond to be issued under a newly established Green Finance Framework.
Mr William Tay, Chief Executive Officer and Executive Director of the Manager, said: “The launch of Ascendas Reit’s Green Finance Framework reinforces our commitment towards the sustainability strategy of Ascendas Reit to improve the environmental performance of its portfolio. The proceeds from our green bonds or loans will allow us to finance green projects that mitigate climate change by reducing greenhouse gas emissions, improving energy efficiency, reducing water consumption or having other positive environmental impact. This is also in alignment with our support of the United Nation’s Sustainable Development Goals.”
Ascendas Reit’s first green bond, to be issued pursuant to its S$7 billion Euro Medium Term Securities Programme, has a tenure of 10 years and a fixed coupon rate of 2.65 per cent. The orderbook was in excess of S$650 million (good at final price guidance), with orders from across 47 accounts. The green bonds were allocated to asset managers, insurance companies and hedge funds (80%), banks and corporates (11%) and private banking accounts (9%). OCBC Bank was the sole lead manager, bookrunner and green finance adviser for this transaction.
The net proceeds from its first green bond, will be entirely used to refinance 17 green properties from Ascendas Reit’s portfolio include ONE@Changi City, Nexus@one-north and Aperia.
Mr Tan Kee Phong, Head of Capital Markets, OCBC Bank, added, “We are delighted to support Ascendas Reit’s sustainability strategy by partnering them on their inaugural green bond. Sustainability has become a key consideration for the market and this has helped green financing gain traction over the last few years. What is even more encouraging is the success of this issuance amidst challenging economic conditions as it shows the resilience in investor appetite for such products.”
The Framework is prepared in line with the Green Bond Principles (2018) and the Green Loan Principles (2020)2 (the Principles) and guides Ascendas Reit in the allocation and management of the proceeds raised from its first green bond as well as future green financing transactions. Ernst & Young LLP has performed an independent limited assurance to confirm that the Framework has been prepared in accordance with the Principles.
The net proceeds from its first green bond, will be entirely used to refinance 17 green properties from Ascendas Reit’s portfolio, which has been selected based on the eligibility criteria in its Framework. These properties have a minimum green rating of BCA3 Green Mark GoldPlus. Some of these properties include ONE@Changi City, Nexus@one-north, and Aperia4. Ascendas Reit owns a total of 34 properties in its Singapore portfolio with BCA Green Mark certifications, the largest number amongst Singapore Reits, and will continue its support of the Green Mark scheme.
The Manager continues to step up its efforts to minimise Ascendas Reit’s environmental footprint. In Singapore, its portfolio currently has the largest combined solar farm by a real estate company comprising 21,000 solar panels across six properties that can generate over 10,000 megawatt hours of solar energy annually. To encourage wider adoption of electric vehicles, Ascendas Reit’s portfolio also provides the largest number of public high speed electric vehicle charging points by a Singapore Reit (40 charging points across 8 properties).