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CLI launches sustainable panda bond

20th March 2024

CapitaLand Investment (CLI) has issued its inaugural sustainability-linked panda bond, raising RMB1 billion ($140 million).

 This is the first sustainability-linked panda bond (a RMB-denominated bond launched by a non-Chinese issuer) from a Singaporean company.  The AAA-rated bond has a three-year tenor and a fixed coupon rate of 3.5% per annum.

CLI said the new 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 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% 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% by 2030.

Mr Puah Tze Shyang, CEO of CLI (China), said: “This issuance enables CLI to diversify our capital sources and increase our financial flexibility.  The panda bond also integrates our financing efforts with CLI’s sustainability performance, demonstrating our focus on responsible growth.  This latest initiative to tap the sizeable domestic capital market in China helps mitigate foreign exchange fluctuations and is part of our ongoing prudent capital management.”

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