CAPITALAND Investment (CLI) has raised one billion yuan (S$186 million) from the second and final tranche of its sustainability-linked bonds in China, after amassing the same amount from an earlier tranche in March this year.
It brings the total amount raised by CLI’s sustainability-linked bonds in China to two billion yuan, or S$372 million.
The latest issuance was made at a fixed coupon rate of 2.8 per cent per annum, which CLI said was a “record low” among panda bonds – or bonds issued and sold in China by a foreign issuer – with a three-year tenor issued under a private placement.
This will contribute to lowering CLI’s financing costs, said the asset manager on Monday (Jul 15).
The second tranche of the bonds attracted “strong interest” from institutional investors with an order book that was 2.64 times subscribed, it said.
Puah Tze Shyang, chief executive of CLI (China), said: “Demand for our inaugural panda bond continues to be strong, affirming investors’ confidence in CLI’s long-term competitiveness and strong execution capabilities. The successful issuance has deepened our access to domestic funding in line with our China for China strategy.”
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He added: “It also dovetails CLI’s capital sources with its sustainability goals as we continue to seek responsible growth. Tapping lower-cost renminbi capital will help to mitigate foreign exchange fluctuations and further demonstrates our disciplined capital management.”
The first tranche of CLI’s sustainability-linked bonds issued in China was made with a fixed coupon rate of 3.5 per cent per annum.
Both tranches of the bonds have a three-year tenor.
CLI intends to use net proceeds from these bonds to refinance its existing borrowings.
Shares of CLI ended Friday S$0.13 or 4.9 per cent higher at S$2.81.
