CICT’s 3.938% senior green bond over two times subscribed

CAPITALAND Integrated Commercial Trust’s (CICT) seven-year senior green bond was over two times subscribed, said book runner DBS on Thursday (Jun 8).

DBS said it had received interest from 53 accounts which booked over S$800 million, including S$132 million from joint lead managers. The issue size was S$400 million. (*see amendment note)

The notes carry a coupon rate of 3.938 per cent, or 87.3 basis points over the Singapore overnight rate average.

They will be issued at par and will pay out semi-annually in arrear on Jun 19 and Dec 19 each year. The first coupon will be paid out on Dec 19 this year.

The bond was three-quarters subscribed by funds or institutions, while the remainder was split almost equally between the public sector and banks or corporations.

About 93 per cent of investors were from Singapore.

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Proceeds raised will be used to finance or refinance the eligible green projects undertaken by CICT and its subsidiaries under the trust’s green finance framework. DBS is the green structuring adviser for the notes.

DBS expects Moody’s to issue an A3 rating on the bonds, which are guaranteed by HSBC Institutional Trust Services (Singapore) – the trustee of CICT.

The notes mature on Jun 19, 2030, and may be redeemed at the option of the issuer at par, in whole but not in part.

The trio of local banks – DBS, HSBC, OCBC – were the joint lead managers and book runners.

Units of CICT closed flat at S$1.95 on Friday.

*Amendment note: The article earlier said that DBS had received a S$132 million interest from JLM International. DBS has clarified that the interest is instead from joint lead managers.