CapitaLand Ascott Trust secures $157.4m sustainability-linked bond

It will be used to decarbonise three of the CLAS’ serviced residences in Southeast Asia.

CapitaLand Ascott Trust (CLAS) has partnered with the International Finance Corporation, (IFC) a member of the World Bank Group, to launch the about S$157.4m (JPY16.5b) sustainability-linked bond in the hospitality sector.

In a disclosure, CLAS’ said the proceeds from the seven-year bond maturing in November 2029 will be used to refinance its existing borrowings and decarbonise its three of its serviced residences including Ascott Jakarta in Indonesia and Ascott Makati and Somerset Millennium Makati in the Philippines.

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 CLAS added that the three residences are expected to reduce electricity consumption by 40.5% by 31 December 2028, in line with the targets under the CapitaLand 2030 Sustainability Master Plan.

The projects should also obtain IFC’s Excellence in Design for Greater Efficiencies Certification during the same period.

It said the bond which was solely subscribed by the IFC, was issued as part of its $2b Multicurrency Debt Issuance Programme with a fixed coupon rate of 1.05% annually and is paid semi-annually.

“We place sustainability at the core of everything we do. Dovetailing our financing efforts with our environmental, social and governance efforts further affirms our commitment towards responsible growth. To date, CLAS has raised about S$450 million through sustainable financing,” said Serena Teo, Chief Executive Officer of CapitaLand Ascott Trust Management Limited and CapitaLand Ascott Business Trust Management Pte. Ltd. 

“CLAS continues to collaborate with like-minded stakeholders in the financing and investment community to fight climate change through our collective efforts. Currently, 35%3 of CLAS’ portfolio is green-certified and we remain on track to green 50% of our portfolio by 2025 and our entire portfolio by 2030,” Teo added.