Ascott Residence Trust has issued its first sustainability-linked bond.
The Singapore real estate investment trust, which owns hotels in 15 countries around the world, said it was the first hospitality REIT to issue a sustainability-linked bond.
Proceeds from the S$200 million ($146 million) five year bond, which was 2.2 times oversubscribed, will be used to refinance existing borrowings. The bonds have a fixed coupon of 3.63% per annum.
The trust has committed to a sustainability performance target having 50% of its total portfolio achieving a regional, national or internationally recognised green building standard or certification by a recognised third-party by the end of 2025.
Beh Siew Kim, chief executive of the REIT’s external manager, said: “Aligning our financing needs with our sustainability efforts to build a greener portfolio demonstrates ART’s focus on responsible growth. As of 31 December 2021, 33% of ART’s portfolio is green-certified and we target to green the rest of our portfolio by 2030.”
Vukile Property Fund has agreed its first green financing with a South African bank.
The South African real estate investment trust, which owns retail assets in South Africa and Spain, will use the ZAR200 million ($13 million) five year facility from Nedbank CIB to fund 19 solar energy projects and energy-efficiency initiatives across South Africa.
The loan will fund seven recently installed solar energy projects at its malls, as well as eight which are underway and four future projects, all scheduled to be completed with 36 months.
Laurence Rapp, CEO of Vukile Property Fund, said: “We are pleased to extend our relationship with Nedbank CIB through our first green loan, which marks a significant milestone in our sustainability journey. This funding will be dedicated to new on-site solar farms at retail property assets, supporting their energy-efficient and cost-efficient operations, and helping to meet the needs of our retailer tenants and shopping centres’ customers, while reducing climate impact.”
To date, Vukile has installed 14.2 MWp in solar photovoltaic power systems through 21 different projects, providing 10% of the electricity consumed across the portfolio and decreasing its carbon footprint by about 20,500 tons of CO2. The REIT plans to install another 7.4 MWp of solar by next March, covering an additional 5% of the portfolio’s electricity consumption.
Frasers Property has secured a £100 million ($131 million) green development loan, its first such loan in the UK.
The Singaporean developer will use the proceeds to finance its development of The Rowe, a 12-storey office building in Whitechapel, East London. The five-year green revolving credit facility was extended by Mizuho Bank and OCBC Bank.
The Rowe, which will be completed in Q3 this year, has already attained an “excellent” rating for its design stage under the BREEAM UK Interim Certificate scheme.
Earlier this year, Frasers secured its first UK sustainability-linked loan, which includes an interest rate reduction if the company maintains its four star GRESB rating.
Group CFO Loo Choo Leong said: “As part of the Group’s sustainability framework, we have set five sustainability goals. These include having 80% of our owned and asset-managed properties green-certified by 2024, and for the majority of our new green and sustainable asset portfolio to be financed with green and sustainable financing within the same time frame. In the UK, around 30% of the Group’s portfolio of business parks are now green-certified. We will continue to work hard to achieve our sustainability goals in a timely manner.”
Frasers Property has secured 26 green or sustainability-linked loans, and two sustainability bonds, raising more than S$6 billion ($4.4 billion) in total.