Ascott Residence Trust (ART) has issued its first sustainability-linked bond of 200 millions of Singapore dollars under its newly established Sustainability-Linked Finance Framework.
Ascott Residence Trust is thus the first listed real estate trust in Singapore to issue a sustainability-linked bond. ART’s sustainability-linked bond is issued pursuant to its S$2 billion Multicurrency Debt Issuance Programme and proceeds from the bond issuance will be used to refinance ART’s existing borrowings. The five-year sustainability-linked bond will mature in April 2027.
ART has achieved a « greenium » through the issuance of the sustainability-linked bond and committed to a sustainability performance target of greening 50% of its total portfolio by the end of 2025. The deal was met with strong demand from institutional investors and was about 2.2 times oversubscribed.
ART’s Sustainability-Linked Finance Framework facilitates the future issuance of sustainability-linked bonds and loans tied to its environmental, social and governance (ESG) objectives including selected United Nations’ Sustainable Development Goals.
Sustainability is core to everything we do at ART. Aligning our financing needs with our sustainability efforts to build a greener portfolio demonstrates ART’s focus on responsible growth. Our global sustainability strategy centres on improving energy efficiency through technology or engineering solutions, as well as increasing the use of renewable energy. Our efforts are also guided by a Sustainability Committee comprising members from ART’s senior management team as well as operations and technical department experts. As of 31 December 2021, 33% of ART’s portfolio is green-certified and we target to green the rest of our portfolio by 2030. We continue to work with our operators and lessees to green our properties globally, and contribute to the environmental and social well-being of the communities we operate in.
Beh Siew Kim, Chief Executive Officer of Ascott Residence Trust Management Limited and Ascott Business Trust Management Pte. Ltd.
Through this operation ART reaffirms its commitment to sustainability and contributes as well to the targets set out under CapitaLand’s 2030 Sustainability Master Plan. The group aims to build « a resilient and resource-efficient real estate portfolio, enabling thriving and future-adaptive communities, and accelerating sustainability innovation and collaboration ».
On November 2021 Accor also announced the inauguration of its sustainability-linked bond for an amount of €700 million, with a coupon of 2.375%, due November 2028. This transaction demonstrates investors’ commitment to sustainable finance and recognizes Accor’s sustainable development ambition.
Through this process Accor aims to accelerate its transition to sustainable growth as well as asserting its environmental and social values by involving the entire value chain. These bonds are indexed to the Group’s greenhouse gas emission reduction targets. According to Brune Poirson, Chief Sustainability Officer at Accor, CSR and economic performance « are very closely aligned, it has to come together ».
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