Ascendas bags $100m through its first green bond

It’ll be used to refinance 17 green properties from its portfolio.

Ascendas Real Estate Investment Trust (Ascendas Reit) has raised $100m through its first green bond to be issued under a newly established green finance framework, an announcement revealed.

The REIT’s first green bond, to be issued pursuant to its $7b Euro medium term securities programme, has a tenure of 10 years and a fixed coupon rate of 2.65%. The order book was in excess of $650m, 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 framework is prepared in line with the Green Bond Principles and the Green Loan 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, the press release said. 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. Some of these properties include ONE@Changi City, Nexus@one-north, and Aperia. Ascendas Reit owns a total of 34 properties in its Singapore portfolio with BCA Green Mark certification.

“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,” said William Tay, CEO of Ascendas Funds Management.