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News Release: CDL Issues The First Green Bond By A Singapore Company

City Developments Limited | Apr 14, 2017

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  • Green financing taps fast-growing demand for socially responsible investment products
  • Paves way for more Singapore firms to finance climate-resilient infrastructure projects, with potential market for future issuances
  • Strengthens CDL’s industry leadership in Environmental, Social and Governance (ESG) performance

City Developments Limited (CDL), through its wholly-owned subsidiary CDL Properties Ltd (CDLP), has successfully launched the first green bond by a Singapore company. The two-year senior secured green bond has raised S$100 million at 1.98% fixed rate due 2019. The investors comprised mainly financial institutions and fund managers. The green bond is issued under the CDLP S$700 million secured Medium Term Note (MTN) Programme first established in 2001. DBS Bank Ltd. (DBS) is the sole bookrunner on this transaction.

Mr Sherman Kwek, CDL Deputy Chief Executive Officer said, “Green finance offers us an alternative financing stream. There is an increased interest in socially responsible investments and a growing demand for relevant products. CDL’s inaugural green bond, also the first by a Singapore company, links our sustainability initiatives with the capital markets and enables us to tap on investors who are supportive of the commitment that CDL has made over the past two decades towards sustainability best practices.”

“CDL’s green bond issuance also complements the Singapore Government’s target of greening at least 80% of the country’s building stock by 2030, which could potentially be the lynchpin of Singapore’s climate pledge to reduce its Greenhouse Gas (GHG) emissions. 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 GHG emissions reduction goals. We would certainly be keen to explore more green bond issuances in future.”

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