More local corporates chase ESG bond labels as Singapore dollar deals for as much as $708m. Ascendas REIT, for instance, has sold $208m of seven-year senior green bonds. The purchase was at 3.64% via sole lead OCBC. Ascott Residence Trust also took this lead. The firm sold a $200m print of the inaugural five-year ESG notes via DBS.
Another company like Sembcorp Industries also offered a $300m seven-year SLB. The price was at 3.75% through joint leads. The leads are DBS, OCBC, and UOB. So far, the sold green bond was from the statutory agency Housing and Development Board. It was from the green debut early March this year with a $1bn or 1.84% five-year note.
The first REIT Management issued a $100m of a five-year CGIF-guarantee social bond at 3.2%. Bankers analyzed that the green and SLB transactions come together more as issuers rapidly launched deals stalled in the first quarter. It happened when the rate of volatility created a large gap between investors pricing expectations and issuers.
The annual financial reporting season is one of the reasons for the delays. One of the DCM bankers noted that there has been market dynamics occurring in Singapore. Issuers identified that the recent deals were done and well-received by investors. So, they take advantage of the market situation ahead of an impending rise in rates and raising cost of funds.
One of the syndicate bankers said that the Singaporean issuers are trying to get out now in order to get the funds before the occurrence of volatility. ESG has helped broaden investors’ demand for green and sustainability-linked notes. The larger orders are from European and Hong Kong-based investors. The investors have mandates for ESG-related investments.
