CCT issues first green bond under Sustainability Financing Framework
Singapore, 16 December 2019 – Enhancing its focus on sustainability, CapitaLand Commercial Trust Management Limited, the Manager of CapitaLand Commercial Trust (CCT or Trust), has set up a Sustainability Financing Framework that allows the Trust to secure funding from like-minded sustainability-centric investors. Under this Framework, CCT issued its first green bond today comprising JPY 10.0 billion of unsecured bonds due in November 2027.
Mr Kevin Chee, Chief Executive Officer of the Manager, said: “CCT has always been a strong advocate of sustainability. The establishment of the Framework reinforces our commitment to sustainability, enables CCT to partner like-minded investors and diversifies our funding sources. Under the Framework, we are pleased to make our first move into sustainable financing, whereby proceeds from this bond issuance will be used to fund green buildings in CCT’s portfolio.”
CCT’s JPY 10.0 billion 0.729% per annum green bonds due 2027 (Bonds) are issued pursuant to the Medium Term Note (MTN) Programme established on 20 November 2007. Proceeds from the Japanese Yen Bonds have been swapped into approximately S$124.7 million at a fixed interest rate of 2.84% per annum payable semi-annually in arrear and will mature on 16 November 2027.
CCT’s Sustainability Financing Framework facilitates the future issuance of sustainable debt to fund investments that meet environmental and social objectives, including select United Nations’ Sustainable Development Goals.
“CCT has always been a strong advocate of sustainability. The establishment of the Framework reinforces our commitment to sustainability, enables CCT to partner like-minded investors and diversifies our funding sources. Under the Framework, we are pleased to make our first move into sustainable financing, whereby proceeds from this bond issuance will be used to fund green buildings in CCT’s portfolio.”
To date, seven of CCT’s eight Singapore properties have been certified Green Mark GoldPLUS and above by Singapore’s Building and Construction Authority (BCA). These include Capital Tower, which has been awarded both BCA Green Mark Platinum and Green Mark Universal Design Mark Gold; CapitaGreen, which has received BCA Green Mark Platinum and Universal Design Mark Platinum; and the upcoming CapitaSpring, which has been accorded the BCA Green Mark Platinum and Universal Design Mark GoldPLUS.
Testament to CCT’s long-term commitment to sustainability, the Trust has been a constituent of several sustainability indices including FTSE4Good Index Series, FTSE4Good ASEAN 5 Index, iEdge SG ESG Index and MSCI ACWI ESG Leaders Index. CCT has been participating in the Global Real Estate Sustainability Benchmark (GRESB) survey since 2013 and was awarded GRESB 4-star in 2019.