Mar 08, 2019 (China Knowledge) - Asia’s largest property investment trust Link Reit is looking to sell a USD 640 million green convertible bond, making it the world’s first real estate company to issue such as bond.
In a filing to the Hong Kong stock exchange, the company has proposed to sell the bond at a coupon of between 0.8% to 1.6%.
The funds raised from the sale of the bond will be used to refinance the company’s current and future eligible green projects such as those relating to energy efficiency, pollution control as well as waste and water management.
The convertible bond will also help the company to replenish its maturing facilities, diversify its funding sources and expand their investor base which would help improve its trading liquidity in the future.
Back in 2016, Link Reit was also issued the first green bond in Hong Kong, making it the first property company to utilize green financing channels in Asia-Pacific. The company raised USD 500 million from the issue at a coupon of 2.875%. This bond will be due in 2026.
Link Reit views sustainability as an important part of its business model and hopes to continue building strong, low-carbon communities.
HSBC and JP Morgan are the joint lead managers for the convertible bond issuance.
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