Ascott Residence Trust pricing five-year sustainability-linked bond: Client note

In March 2022, Ascott Residence Trust agreed to acquire the Eslead College Gate Kindaimae student accommodation property near the main campus of Kindai University, in Japan.In March 2022, Ascott Residence Trust agreed to acquire the Eslead College Gate Kindaimae student accommodation property near the main campus of Kindai University, in Japan.

Ascott Residence Trust is pricing a five-year senior unsecured sustainability-linked notes denominated in Singapore dollars, according to a client note seen by Shenton Wire. 

The pricing is expected in the 3.85 percent area, with a landing guidance of 3.4 percent to 3.5 percent, the client note said. The client note said the offering was “benchmark,” suggesting the size is at least S$100 million.

The sustainability performance target is for 50 percent of the gross floor area of Ascott Residence Trust’s portfolio being awarded regionally, nationally or internationally recognized green building standards or certifications by the observation date, which is initially set at end-2025, the client note said. If ART doesn’t meet the target, an amount equal to 0.25 percent of the denomination amount will be charged, the client note said.

The client note said net proceeds will be used to refinance existing borrowings, the client note said.

Fitch Ratings is expected to rate the notes at BBB-minus, the client note said.

The sole sustainable finance advisor, sole lead manager and sole bookrunner is DBS Bank, the client note said.

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