Ascendas Real Estate Investment Trust (Ascendas Reit) has priced its S$300 million (US$219.17 million) green subordinated perpetual securities, the first such issuance 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 annum. The first distribution rate reset will fall on September 17 2025 with subsequent resets occurring every five years thereafter. The distribution will be payable semi-annually in arrears on a discretionary basis. The order book was in excess of S$725 million, considered good at final price guidance, across 57 accounts.
The green perpetual securities mark the second green issuance under the Ascendas Reit’s Green Finance Framework, prepared in accordance with the Green Bond Principles and the Green Loan Principles, which are the leading frameworks globally for the issuance of green bonds and green loans respectively.
OCBC Bank was the sole lead manager, bookrunner and green finance adviser for the transaction.
William Tay, chief executive officer and executive director of Ascendas Funds Management, which manages the Reit, comments: “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.”
Ascendas Reit is Singapore’s first and largest listed business space and industrial real estate investment trust. As of June 30 2020, its investment properties under management stand at S$12.75 billion, comprising 197 properties across Singapore, Australia, the United Kingdom and the United States.