Ascendas REIT (A-REIT) has successfully priced its $300 million green subordinated securities on September 10, making it the first to do so in Asia.

This also marks the second green issuance under A-REIT’s green finance framework prepared under the green bond principles in 2018, and the green loan principles in 2020.

The green perpetual securities, which are issued under A-REIT’s $7 billion Euro Medium Term Securities Programme, will have an initial rate of 3% per annum.

See: Ascendas REIT establishes $7 bil Euro Medium Term Securities programme

The first distribution rate will fall on Sep 17, 2025, with subsequent resets taking place once every five years thereafter.

The orderbook was in excess of $725 million (good at final price guidance) across 57 accounts.

OCBC Bank was the sole lead manager, bookrunner and green finance adviser for this transaction. 

“This is the second green financing instrument we have issued this year that is backed by 17 BCA Green Mark Platinum and GoldPlus properties in the Ascendas Reit portfolio,” says William Tay, CEO and executive director of the manager.

“We will not stop here. We will be incorporating more “green” initiatives into our core business strategy, for example in the areas of financing, property development and asset improvements. This is an important commitment on our part to contribute to conserving the environment,” Tay adds.

Units in Ascendas REIT closed 3 cents lower, or 0.9% down, at $3.27 on September 10.