CDL issues first green bond by a Singaporean company

The two-year senior secured green bond raised $100m.

City Developments Limited (CDL) kicked off the issuance of a green bond, making it the first Singaporean company to do so.

Through the group's wholly-owned subsidiary CDL Properties Ltd., the two-year senior secured green bond has raised $100m at 1.98% fixed rate due 2019. The investors comprised mainly financial institutions and fund managers.

CDL deputy chief executive officer Sherman Kwek said green financing taps fast-growing demand for socially responsible investment products. "Green finance offers us an alternative financing stream. There is an increased interest in socially responsible investments and a growing demand for relevant products,” he explained.

More so, the CEO noted how the green bond issuance complements the Singapore Government’s target of greening at least 80% of the country’s building stock by 2030, which could potentially be the lynchpin of Singapore’s climate pledge to reduce its Greenhouse Gas (GHG) emissions.

"It is clear that for the next 13 years, real estate companies have a large role to play in mitigating climate change and contributing towards Singapore’s greening and GHG emissions reduction goals. We would certainly be keen to explore more green bond issuances in future," he added.