15 Jul 2021
An Asset Enhancement Initiative (AEI) was completed at our property at 468 Boundary Road, Derrimut VIC. Sustainability initiatives included upgrading the lighting to LEDs throughout the property, installing a 250kW solar PV system and upgrading the landscape with drought-tolerant plants.
SINGAPORE, 15 JULY 2021
Frasers Logistics & Commercial Asset Management Pte. Ltd., the manager of Frasers Logistics & Commercial Trust (“FLCT”, and the manager of FLCT, the “REIT Manager”), is pleased to announce that FLCT has priced S$150 million of its maiden sustainability notes to be issued under a newly established Sustainable Finance Framework (the “Framework”)1 . It is also the first ever sustainability notes to be priced in the SGD bond market, where proceeds raised are deployed towards the financing or refinancing of Eligible Sustainable Projects as described in the Framework.
FLCT’s first sustainability notes are also FLCT’s inaugural notes to be issued pursuant to its S$1 billion Multicurrency Debt Issuance Programme. With a fixed coupon rate of 2.18 per cent, the 7-year notes will mature in 2028. The deal was underpinned by exceptionally strong demand from institutional investors. The final orderbook was in excess of S$450 million, with orders from across 39 accounts. In terms of investor distribution, 75% of the notes were allocated to fund managers and insurance accounts, 19% to banks and public sector accounts, and 6% to private banking accounts.
Mr. Robert Wallace, Chief Executive Officer of the REIT Manager, said, “Sustainability has been integral to FLCT’s business activities since our inception, and we are delighted with this opportunity to match the diversification of our financing needs via the debt capital markets with sustainability notes. We are thankful to investors for their strong support of FLCT’s maiden debt issuance, which illustrates confidence in FLCT’s financial strength and growth strategy.”
On 15 April 2021, S&P Global Ratings (“S&P”) had assigned a 'BBB+' long-term issuer credit rating, with stable outlook to FLCT. The rating reflects S&P’s views that FLCT's earnings will remain resilient due to good portfolio diversification across asset classes and geographies, FLCT’s lease structures will continue to support its high earnings predictability and that FLCT will preserve its solid portfolio and earnings quality, underpinned by management's strong expertise and portfolio management capabilities. The sustainability notes are rated BBB+ by S&P.
FLCT has committed to achieving a net zero carbon status by 2030, in line with Frasers Property Limited’s ambition to be net zero carbon as an organisation. FLCT has developed a work plan to realise its commitment through the various focus areas within its sustainability strategy, which provides the overarching strategy that drives FLCT’s approach through three focus areas – Acting Progressively, Consuming Responsibly and Focusing on People. FLCT recognises and understands that sustainability is more than just managing risks. Sustainability provides opportunities to enhance its resilience, provide better customer performance and future-proof its business for the long-term. FLCT2 was named ‘Industrial - Global Listed Sector Leader’ in 2020 by GRESB (Global Real Estate Sustainability Benchmark) for the third consecutive year.
Frasers Property is one of the first movers in sustainable financing in Singapore and the wider Asia Pacific region. FLCT is committed to developing sustainable financing practices that are in line with international standards and guidelines and intends to actively leverage on financing opportunities to achieve its sustainability goals. FLCT decided to establish the Framework in order to align its 2030 net zero target and support its sustainability initiatives through the funding programme.
DBS Bank Ltd. and OCBC Bank are the joint lead managers and bookrunners for the transaction. OCBC Bank also acted as the sustainable finance advisor in the preparation of the Framework, which was drawn up in line with the relevant international principles and guidelines3 . Deloitte was engaged to provide a limited assurance engagement, and has reviewed the Framework as at 7 July 2021, where the overarching criteria and guidelines of the Framework are in accordance with the Principles.