Singapore-based CapitaLand Investment Inc has raised about $138 million for the second tranche of its panda bond issuance while China-backed AIIB commits to invest $75 million in SeABank’s bonds.
CapitaLand raises $138m more from panda bonds
Global real asset manager CapitaLand Investment Limited (CLI) has announced raising 1 billion yuan (about $138 million) from the second tranche of its sustainability-linked panda bond issuance.
The second tranche, which attracted interest from institutional investors, brought the total amount raised from the bond issuance to 2 billion. The panda bond was issued at a fixed coupon rate of 2.8% per annum.
In March, CLI raised 1 billion yuan from the first tranche, which had a fixed coupon rate of 3.5% per annum. Each tranche of the panda bond has a three-year tenor.
The sustainability-linked panda bond is pegged to CLI’s target to reduce energy consumption intensity by 7.5% at its properties in China by 2025 from the base year of 2019, per the announcement.
The proceeds from the bond will be directed towards refinancing existing loans under its 2-billion-yuan Debt Issuance Programme.
AIIB commits $75m to SeABank’s bonds
Asian Infrastructure Investment Bank (AIIB), a China-backed multilateral development bank, has committed to invest $75 million in the green and blue bonds to be issued by Vietnam’s Southeast Asia Commercial Joint Stock Bank (SeABank), according to an announcement.
The transaction marks AIIB’s first investment in a blue bond. It is also the first-ever blue bond issued from Vietnam, a founding member of AIIB. The green bond was the first by a private commercial bank in the country, per the announcement.
SeABank said it will use the proceeds from the bond issuance to expand financing for sustainable economic activities linked to water and the sea as well as grow green assets such as green buildings, renewable energy, and energy efficiency.
“AIIB is very pleased to work with SeABank and IFC (International Finance Corporation) in this innovative transaction that will supplement ongoing measures to reduce greenhouse gas emissions and contribute to thematic capital market development,” said Gregory Liu, AIIB director general of Global Financial Institutions and Funds.
AIIB is a multilateral development bank that began operations in Beijing in January 2016 with 57 founding members. By the end of 2020, it had 103 approved members representing approximately 79% of the global population and 65% of the global GDP.
