SIAU MING EN Today Online 7 Apr 17;
City Developments Limited (CDL) announced yesterday that it has launched the first green bond by a Singapore company through its subsidiary CDL Properties.
The bond raised S$100 million at 1.98 per cent fixed rate due in 2019. Investors consist mainly of financial institutions and fund managers.
In a press release, CDL noted that the demand for green bonds has been fuelled by the Paris Agreement on climate change, with more investors looking to fund “low-carbon and climate-resilient projects”.
CDL deputy chief executive officer Sherman Kwek said its green bond will also complement the Government’s target of greening at least 80 per cent of the country’s building stock by 2030.
“It is clear that for the next 13 years, real estate companies have a large role to play in mitigating climate change and contributing towards Singapore’s greening and green house gas emissions reduction goals. We would certainly be keen to explore more green bond issuances in future,” said Mr Kwek.
Proceeds of CDL’s green bond will be used to repay the S$100 million loan extended by CDL to CDL Properties, which owns Republic Plaza in the Central Business District.
At the Singapore Dialogue on Sustainable World Resources yesterday, Singapore Institute of International Affairs chairman Simon Tay had cited the issuance of green bonds as one of the possible ways to get banks and financial institutions to take up sustainable financing.
Last month, Minister for National Development Lawrence Wong said the Monetary Authority of Singapore will promote the development of a wider range of sustainability-oriented benchmarks, funds and products, starting with green bonds. SIAU MING EN
