Ascott Residence Trust issues SGD 200 million sustainability bond

(April 22, 2022, 11:49 +07)
Ascott Residence Trust (ART) has issued its first S$200 million (approximately US$147 million) sustainability bond under a new sustainability-linked financing framework.

The bond is being issued under its S$2 billion multi-currency debt issuance program and the proceeds from the bond issuance will be used to refinance ART’s existing borrowings. With a fixed coupon rate of 3.63% per annum, paid semi-annually in arrears, the five-year sustainability bond will mature in April 2027.

ART has achieved “greenium” through the issuance of the sustainability bond and has committed to achieving a sustainability performance target (SPT) of greening 50% of its total portfolio by the end of 2025.

Properties must achieve a recognized third-party regional, national or internationally recognized green building standard or certification as of the SPT observation date.

lyf one north of singapore

The operation met with strong demand from institutional investors and was oversubscribed approximately 2.2 times. The bond issue was eventually increased from S$150 million to S$200 million, and the final order book closed at S$335 million with orders coming from 47 accounts. In terms of distribution to investors, 79% of the bond was allocated to institutional accounts and 21% to private bank accounts.

ART simultaneously entered into a cross-currency interest rate swap transaction to swap the Singapore dollar-denominated coupon payments of the bond into Japanese yen at a fixed interest rate of 1.043% per annum.

Ms. Beh Siew Kim, President and CEO of Ascott Residence Trust Management and Ascott Business Trust Management (the managers of ART), said, “Sustainability is at the heart of everything we do at ART. Aligning our funding needs with our sustainability efforts to build a greener portfolio demonstrates ART’s focus on responsible growth. Our global sustainability strategy focuses on improving energy efficiency through technological or engineering solutions, as well as increasing the use of renewable energy. Our efforts are also guided by a Sustainability Committee comprised of members of ART’s management team as well as operations and technical service experts. As of December 31, 2021, 33% of ART’s portfolio is certified green and we aim to green the rest of our portfolio by 2030. We continue to work with our operators and tenants to green our properties globally and contribute to environmental and social protection. well-being of the communities in which we operate.

ART’s sustainability-linked finance framework facilitates the future issuance of sustainability-linked bonds and loans linked to its environmental, social and governance (ESG) objectives, including certain United Nations Sustainable Development Goals .

ART engaged Moody’s ESG Solutions to provide a second party opinion (SPO) on ART’s sustainability related finance framework.

According to Moody’s ESG Solutions, “ART’s key performance indicators are clearly defined, measurable and demonstrate a robust level of ambition relative to its hospitality industry peers. Its sustainability-linked financing framework has clearly revealed its strategies to achieve its SPTs and is credible. »

Fitch Ratings assigned a long-term issuer default rating of “BBB-”, with a stable outlook to ART. The rating reflects the growing diversification of ART’s real estate portfolio into longer-term assets, such as student residences and rental accommodation, in the medium term. ART’s sustainability bond is also rated “BBB-” by Fitch.

DBS Bank Ltd. is the only sustainable finance advisor, lead arranger and bookrunner for the transaction.

In January 2021, ART was the first hotel trust in Singapore to obtain a green loan. Proceeds from the loan were used to finance lyf one-north Singapore (pictured), ART’s first development project. The newly opened co-living property is equipped with green, energy efficient and smart building features and is Green Mark GoldPLUS certified by the Building and Construction Authority of Singapore.


Securities:

Destination 2030: Preparing global cities for sustainable tourism growth Finnair removes requirement for passengers to wear face masks Ascott issues SGD200m sustainability bond Third runway at Hong Kong airport declared Boeing Partners Yale Center for Natural Carbon Capture Malaysia Aviation Group Announces Positive EBITDA of RM433 Million Angola Orders Three Airbus C295 Embraer Delivers Latest Modernized AF-1B Fighter Jet to Brazilian Navy Cathay Pacific Launches Program Sustainable Aviation Fuel for Etihad Company Works with SATAVIA to Enable Contrails Prevention Hyatt Signs Thompson Hotel in Vienna, Austria Air Canada Cargo Expands Fleet with Second Boeing 767-300ER Shell Selects FCM as Global Travel Supplier Emirates Holidays appoints Thomas Cook India and SOTC Travel as Preferred Sales Agents Rachel Bullen joins Cliniqu e La Prairie Bangkok as resident nutritionist Eve UAM works with Thales to advance development of eVTOL Avions in Brazil Qantas to launch seasonal flights between Adelaide and Albury Dusit appoints Prateek Kumar as Senior Vice President Operations IndiGo Responsive codeshare agreement with Qatar Airways Bombardier names Wichita site as Accelya’s new U.S. headquarters names Nabil Rohman as Asia-Pacific Regional Sales Manager Four Seasons Resort Lanai names Avi Phookan as Resort Manager Pascal Bélanger joins Plaza Premium Canada as SVP Business Development and Operations Emirates to increase flights between Algiers and Dubai Hyatt opens first hotel in Czech Republic Tivoli Hotel opens in Chengdu, China Gaurav Anand appointed Executive Chef of two hotels Hilton in Bangalore, India Air New Zealand resumes flights to San Francisco, USA Capital A aj ute RedRadio to super airasia app Malaysia Airlines increases flights for Hari Raya Gulf Air to increase flights to India Spa at Four Seasons Beverly Wilshire adds LightStim LED bed to service at world’s busiest cargo airport at 2021, HKIA reports March 2022 traffic fic Challenger 3500 Business Jet wins Red Dot: Best of the Best Award Cebu Pacific resumes more direct domestic flights from Cebu and Davao Emirates to launch NFTs; Repurpose Expo 2020 Pavilion AirAsia resumes flights between Kota Kinabalu and Singapore Cathay Pacific reports cargo and passenger traffic in March Air New Zealand eases travel requirements Wellington, Auckland and Christchurch AirAsia to resume more flights between Malaysia and India Cebu Pacific takes delivery of 10th all-new Airbus A321neo Hyatt Rebrands Hotel in New Delhi, India Incheon Airport improves security with HI-SCAN 6040 CTiX scanners Jetstar Asia resumes flights between Singapore and Danang, Vietnam Minor International creates advisory board in UK Marc Groh appointed Managing Director of Banjaran Hotsprings Retreat in Ipoh, Malaysia Airbus completes wind tunnel testing of eXtra Performance Air Astana wing demonstrator to increase flights between Kazakhstan and Turkey Planet 9 expands its operations with two planes and 8 Pilots Munich Airport launches Marriott Terminal 2 audio tour The transformationof Sheraton hotels in Canada continues Air France confirms order for four A350 Freighters Georgia to host ITB’s inaugural TRVLX B2B networking event in May Ascott targets 150 lyf properties with more than 30,000 units by 2030 Marriott signs Hotel St. Regis in Goa, India BOC Aviation orders 80 Airbus aircraft Ewan Taylor appointed general manager of Shinta Mani Angkor BCD Travel promotes two senior executives in Asia-Pacific OYO Hotels selects performance management platform from SP Square Jetstar resumes flights from Saigon departing from Melbourne and Sydney Trip Affiliates Network Google Hotels Partners Hilton signs hotel in Kyoto, Japan Saber expands presence in Japan with Bear Luxe partnership Minor wins bid to open Corbin & King JW Hotel Marriott in Guadalajara, Mexico Swire Hotels in Hong Kong implements a suite of technology solutions from Agilysys Aerospace Engineering and Digital Center opening innovation in India Lauren Crocket joins Visual Matrix as Director of Customer Experience Fiji Beat New Zealand to Win Singapore Sevens 2022 Capital A Partners Google Cloud for airasia Super App Development China Airlines upgrades in-flight entertainment with service e-library Malaysia Airlines expands partnership with Amadeus Qantas to launch flights from Sydney to India and South Korea; Codeshare with IndiGo Smiths Detection tackles money laundering with iCMORE Currency Algorithm SAS appoints Ann-Sofie Hörlin as Chief Sustainability Officer 45 Park Lane appoints Elliott Grover as Chief Executive Saab receives regulatory approval for provide UK Armed Forces with AirAsia X digital tower technology to expand network with flights to South Korea and India Cebu Pacific changes checked baggage policy Gathering Steam Air Travel; APAC Airlines Announces 144.4% Increase in Traffic Four Seasons Singapore appoints Tobias Emmer as Emirates Hotel Manager to resume flights to Bali, London Stansted, Rio de Janeiro and Buenos Aires Accor signs distribution agreement with Traveloka Global air freight growth continues in February Etihad Guest joins Miles on the move at Abu Dhabi Int. Centara Airport renews its 526-room hotel in Chiang Mai, Thailand eRoam Travel Technology becomes Saber Gold Developer Partner Emirates launches two daily A380 flights to Mauritius Honeywell expands MRO services in Malaysia for 15 Nuuva V300 aircraft Pipistrel SAS’s hVTOL launches recruitment process for new CCOs and CFOs Brazilian Army orders four Saber M60 radars Sleeping at Old Trafford the night before Manchester United play Chelsea in the EPL? Hilton signs first Waldorf Astoria hotel in Australia Qatar’s Chiva-Som wellness resort celebrates grand opening Sterling Holiday Resorts appoints Vikram Lalvani as Managing Director and CEO ALC confirms order for 32 Boeing 737s British Airways resumes flights international short-haul flights from London Gatwick Justin Koslowsky appointed Chief Executive of Way to Sea in New Orleans Sikorsky, Boeing expands Defiant team with six new suppliers Two resorts in Bali join Cross Collection Emirates expands use of ports of mobile check-in at DXB Qantas launches flights between Darwin and Dili, Timor-Leste airport Authority Hong Kong becomes sole shareholder of AsiaWorld-Expo Cebu Pacific operating 96% of pre-pandemic domestic capacity ASL Aviation Holdings orders ten Boeings 737-800 converted freighters VistaJet takes delivery of 10th Global 7500 Air France will operate 90% of pre-COVID19 capacity in summer 2 022 Outrigger takes over luxury resort in the Maldives Etihad Airways adds first A350-1000 to its Accor Exp ands Portfolio fleet in Australia through major agreement with Salter Brothers Travel industry interview with Kurt Ekert, President of Saber HD Videos and Interviews HD Video Interview Podcasts RSS Feed – Travel Industry News Ticker – Travel Industry News Image Galleries Travel News Asia – Latest Travel Industry News


Comments are closed.