Ascendas Reit priced first real estate green perpetual securities in Asia
Singapore, 10 September 2020 – Ascendas Funds Management (S) Limited (the Manager), the Manager of Ascendas Real Estate Investment Trust (Ascendas Reit) is pleased to announce that Ascendas Reit has successfully priced its S$300 million Green subordinated perpetual securities (the Green Perpetual Securities) today. This is the first real estate Green perpetual securities in Asia.
The Green Perpetual Securities, issued under Ascendas Reit’s S$7 billion Euro Medium Term Securities Programme, will have an initial rate of distribution of 3 per cent. per annum. The first distribution rate reset will fall on 17 September 2025 with subsequent resets occurring every five years thereafter. The distribution will be payable semi-annually in arrear on a discretionary basis. The orderbook was in excess of S$725 million (good at final price guidance) across 57 accounts. The Green Perpetual Securities mark the second Green issuance under the Ascendas Reit’s Green Finance Framework1, prepared in accordance with the Green Bond Principles (2018) and the Green Loan Principles (2020)2 (collectively referred to as the Principles). OCBC Bank was the sole lead manager, bookrunner and Green finance adviser for this transaction.
Mr William Tay, Chief Executive Officer and Executive Director of the Manager, said: “This is the second Green financing instrument we have issued this year that is backed by 17 BCA Green Mark Platinum and GoldPlus properties in the Ascendas Reit portfolio.
We will not stop here. We will be incorporating more 'Green' initiatives into our core business strategy, for example in the areas of financing, property development and asset improvements. This is an important commitment on our part to contribute to conserving the environment.”
Notes
1 Green Finance Framework: please refer to Ascendas Reit’s corporate website https://ir.ascendas-reit.com/green_financing.html.
2 The Green Bond Principles 2018 by the International Capital Market Association and the Green Loan Principles 2020 by the Loan Market Association, Asia Pacific Loan Market Association and Loan Syndications and Trading Association are leading frameworks globally for the issuance of Green bonds and Green loans respectively.