CapitaLand Integrated Commercial Trust Issues S\$300 Million Green Notes Due 2031

Key Highlights

• CapitaLand Integrated Commercial Trust (CICT) has announced the successful issuance of S\$300 million in aggregate principal amount of 2.18% fixed rate green notes due 10 March 2031.
• The notes were issued under CICT’s US\$7 billion Euro-Medium Term Note (EMTN) Programme, last updated on 18 June 2025, and are unconditionally and irrevocably guaranteed by HSBC Institutional Trust Services (Singapore) Limited, in its capacity as trustee of CICT.
• The notes are rated “A-” by S&P Global Ratings, reflecting a high degree of credit quality, though the rating may be revised or withdrawn at any time.
• Interest Rate: The notes carry a fixed coupon of 2.18% per annum, payable semi-annually in arrears.
• Maturity: The notes will mature on 10 March 2031.
• Use of Proceeds: Funds raised will be used to finance or refinance Eligible Green Projects in accordance with the CICT Green Finance Framework, supporting CICT’s sustainability agenda.
• The notes are offered only to institutional and/or accredited investors, and are not available to the public in the United States, EU, EEA, Canada, or Japan due to securities law restrictions.
• The notes will be listed and quoted on the Singapore Exchange Securities Trading Limited (SGX-ST) on or about 11 March 2026, pending final admission and quotation.

Important Information for Shareholders

• Event of Default Clause: A critical condition in the EMTN Programme stipulates that if the Manager (CapitaLand Integrated Commercial Trust Management Limited) is removed and a replacement or substitute manager is not appointed in accordance with the CICT trust deed, this would constitute an event of default under the terms of the notes. This could trigger cross defaults in other facilities, debt issues, and borrowings of CICT and/or its subsidiaries.
• Potential Impact: As of the date of this announcement, the aggregate amount of facilities, debt issues, and borrowings that may be affected by such cross defaults is approximately S\$8,579 million (including the new notes but excluding interest). Any breach of this clause would be highly material and could significantly impact the trust’s financial stability and share price.
• No Breach Reported: There has been no breach of the above condition as of the date of the announcement.
• Green Financing: The issuance further signals CICT’s commitment to sustainability and the growing importance of green financing in its capital management strategy. This could bolster investor confidence regarding the Trust’s ESG credentials.
• Liquidity & Trading: The units in CICT are traded on SGX-ST. Investors may only trade their units on this platform and have no right to request the manager to redeem or purchase their units while listed.
• Risks: The announcement reiterates that past performance is not indicative of future results, investments are subject to risks including potential loss of principal, and the units are not guaranteed by the manager or its affiliates.
• Securities Law Restrictions: The notes have not been and will not be registered under the US Securities Act; any offer or sale in restricted jurisdictions is prohibited and may lead to legal violations.

Potential Price-sensitive Factors

• The size and nature of the new debt issuance (S\$300 million green notes) and its impact on CICT’s overall borrowing profile could influence investor perceptions of leverage and sustainability.
• The event of default clause linked to the removal of the manager and the cross-default risk on S\$8,579 million of borrowings is a material risk factor. Shareholders should monitor any developments related to management changes closely.
• The strong “A-” rating by S&P Global Ratings may boost confidence, but any future rating changes could affect the trust’s cost of capital and market value.
• The focus on green projects may attract ESG-focused investors, potentially enhancing demand for both the notes and the REIT’s units.

Summary

CICT’s issuance of S\$300 million in 2.18% fixed rate green notes due 2031 under its EMTN Programme is a significant move in both sustainable finance and capital management. The event of default clause and the cross-default implication on a substantial amount of borrowings are particularly important for shareholders and could be material to the trust’s share value. The successful listing and the “A-” rating underline CICT’s financial standing, though investors should remain vigilant for any changes in management or credit ratings, as these could have immediate and significant financial implications.

Disclaimer: This article is for informational purposes only and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Investments in CapitaLand Integrated Commercial Trust or its notes are subject to investment risks, including the potential loss of principal. Past performance is not indicative of future results. The information herein is based on public announcements and may not cover every aspect of the transaction. Investors should seek professional advice and consult the official documents before making any investment decisions.

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