CapitaLand Investment (CLI) has successfully issued its inaugural sustainability-linked panda bond, raising RMB1 billion (approximately S$187.1 million1) from investors. This is the first sustainability-linked panda bond issued by a Singapore company. CLI’s panda bond, with a three-year tenor and a fixed coupon rate of 3.5% per annum, has garnered strong demand from institutional investors with a subscription rate of 1.65 times.
CLI’s panda bond has enabled the company to access lower-cost RMB capital and further expand its domestic funding channels and investor base, in line with its China-for-China strategy. The panda bond is being issued as part of its RMB2 billion Debt Issuance Programme and net proceeds from the issuance will be used to refinance existing borrowings.
The sustainability-linked panda bond is tied to CLI’s target of lowering its energy consumption intensity by at least 6%2 at its properties in China. The reduction in energy consumption intensity will contribute to CLI’s efforts in meeting the targets set out in its 2030 Sustainability Master Plan which include achieving Net Zero carbon emissions for scope 1 and scope 2 by 2050 and reducing scope 1 and 2 carbon emissions by 46%3 by 2030.
Source: press release sent 19 March 2024