CapitaLand raises $138m from second tranche of sustainability-linked panda bond

CapitaLand Investment Ltd. (CLI), a Singaporean real estate investment and management firm, has raised RMB1 billion (approximately $138 million) from the second tranche of its inaugural sustainability-linked panda bond from institutional investors, bringing the total amount raised to RMB 2 billion (approximately $275 million).

The panda bond, a Chinese renminbi-denominated bond from a non-Chinese issuer, was issued at a fixed coupon rate of 2.8 percent per annum. CLI said this is a record low coupon rate among panda bonds with a three-year tenor issued under a private placement, which will contribute to lowering the firm’s financing costs. In March, CLI raised RMB1 billion from the first tranche with a fixed coupon rate of 3.5 percent per annum. Each tranche of the panda bond has a three-year tenor.

CLI said it will use the net proceeds from the panda bond to refinance existing borrowings. The sustainability-linked panda bond is pegged to CLI’s target to reduce ene