Ascendas REIT Priced First Real Estate Green Perpetual Securities In Asia
September 11, 2020 – Ascendas Funds Management (S) Limited , the Manager of Ascendas Real Estate Investment Trust (Ascendas REIT) is pleased to announce that Ascendas Reit has successfully priced its S$300 million Green subordinated perpetual securities. This is the first real estate Green perpetual securities 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 cent. per annum. The first distribution rate reset will fall on 17 September 2025 with subsequent resets occurring every five years thereafter.
The distribution will be payable semi-annually in arrear on a discretionary basis. The orderbook was in excess of S$725 million (good at final price guidance) across 57 accounts. The Green Perpetual Securities mark the second Green issuance under the Ascendas Reit’s Green Finance Framework1, prepared in accordance with the Green Bond Principles (2018) and the Green Loan Principles (2020)2 (collectively referred to as “the Principles”). OCBC Bank was the sole lead manager, bookrunner and Green finance adviser for this transaction.
Mr William Tay, Chief Executive Officer and Executive Director of the Manager, said: “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.
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