CAPITALAND Ascott Trust Management Ltd. has partnered up with International Finance Corp. (IFC) to be the sole subscriber for a sustainability-linked bond worth 16.5 billion Japanese yen or about 157.4 million Singapore dollars.

“[CapitaLand Ascott] continues to collaborate with like-minded stakeholders in the financing and investment community to fight climate change through our collective efforts,” said Serena Teo, its chief executive officer, in a press release.

Proceeds from the issuance will be used to refinance CapitaLand Ascott’s debts and to further decarbonize three of its serviced residences in Southeast Asia.

The residences — Ascott Jakarta in Indonesia, Ascott Makati, and Somerset Millennium Makati in the Philippines — are expected to achieve a 40.5% reduced electricity consumption by the end of 2028.

The projects must also obtain IFC’s Excellence in Design for Greater Efficiencies (EDGE) certification within the same time frame.

CapitaLand Ascott is said to be the largest lodging trust in Asia-Pacific with an asset value of S$7.6 billion as of mid-2022. IFC is a global development institution focused on private firms in emerging markets.

The bond issuance is part of CapitaLand Ascott’s S$2-billion multicurrency debt issuance program with a fixed coupon rate of 1.05% per annum.

The seven-year bonds will mature in November 2029 and will be paid semi-annually.

According to Ms. Teo, the company has already raised around S$450 million through sustainable financing.

“Dovetailing our financing efforts with our environmental, social and governance efforts further affirms our commitment towards responsible growth,” Ms. Teo said.

“Currently, 35% of [CapitaLand Ascott’s] portfolio is green-certified and we remain on track to green 50% of our portfolio by 2025 and our entire portfolio by 2030,” she added. — Justine Irish D. Tabile

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