CapitaLand Integrated Commercial Trust Announces New SGD 5Y Senior Green Notes at an IPG of 2.90%

• CapitaLand Integrated Commercial Trust ("CICT"), through its financing vehicle CMT MTN Pte. Ltd., intends to issue new SGD Senior Green Notes with an initial price guidance ("IPG") of 2.90%. The notes are guaranteed by HSBC Institutional Trust Services (Singapore) Limited in its capacity as trustee of CICT, with settlement expected on 8 September 2026 and maturity on 8 September 2031. Expected issue rating is A- by S&P, in line with CICT's own issuer rating. Net proceeds will be used to finance or refinance eligible green projects under CICT's Green Finance Framework.

• CICT is the first and largest real estate investment trust ("REIT") listed on the Singapore Exchange Securities Trading Limited ("SGX-ST") and is managed by CapitaLand Integrated Commercial Trust Management Limited, a wholly owned subsidiary of CapitaLand Investment Limited, a leading global real asset manager with a strong Asia foothold. As of 30 June 2026, CICT has a market capitalisation of S$18.9 billion. The Trust owns and invests in quality income-producing assets primarily used for commercial purposes, including retail and office, located in Singapore, Australia, and Germany.

• For 1H 2026, CICT's portfolio operating profile remains resilient, with an overall portfolio occupancy of 95.6% and a weighted average lease expiry ("WALE") of 3.0 years. Rent reversion was also positive across the board, at +4.0% for retail and +6.5% for office. CICT continues to maintain a diversified tenant trade mix, with no single tenant contributing over 5% of total gross rental income.

• CICT reported gross revenue of S$846.8 million, up 7.5% YoY, and net property income ("NPI") of S$630.5 million, up 8.7% YoY. Growth was driven by CapitaSpring's step-up acquisition and contribution from Galileo, partially offset by the divestment of Bukit Panjang Plaza. Distributable income rose 13.3% YoY to S$466.7 million, and distribution per unit ("DPU") rose 7.1% YoY to 6.02 cents.

• As of 30 June 2026, CICT held S$99.9 million in cash and cash equivalents against approximately S$9.9 billion in loans and borrowings at the Group level. Of total borrowings, approximately S$8.8 billion was unsecured, while S$1.2 billion was secured. Approximately 78% of total borrowings were on fixed interest rates, while CICT maintained a well-staggered debt maturity profile with an average term-to-maturity of 4.1 years, mitigating refinancing concentration in any single year. Unencumbered assets remained high at 92.8% of total assets. The Trust also remains an active green bond issuer, having priced S$300.0 million of 2.18% fixed-rate notes due 2031 in March 2026 under its Green Finance Framework.

• Aggregate leverage stood at 37.4% as of 30 June 2026, down from 38.6% at end-2025, aided in part by the temporary deployment of proceeds from the April 2026 private placement and the Bukit Panjang Plaza divestment toward debt repayment ahead of the Paragon acquisition, which completed on 1 July 2026. Average cost of debt held steady at 2.9%, while the interest coverage ratio (“ICR”) improved to 3.9x from 3.7x over the same period. Current ICR is at a level that would still hold at 3.5x under a 10% EBITDA stress scenario, or 2.9x assuming a 100bps rise in the weighted average interest rate. NAV per unit stood at S$2.15, broadly stable versus S$2.14 at end-2025.

• Overall, we view CICT as a solid issuer, underpinned by its well-diversified portfolio of retail, office and integrated development assets across Singapore, Australia, and Germany, and consistent double-digit growth in distributable income. Leverage is comfortably within regulatory limits, debt maturities are well-spread with no near-term refinancing cliff. Its credit profile is further supported by an established green bond track record, with S$6.8 billion of green and sustainability-linked debt against a 100% green-rated portfolio by gross floor area.

• Against the SGS 5-year benchmark of 2.00% as of 1 September 2026, the new issue's 2.90% IPG offers a pickup of approximately 90bps over the risk-free curve.

• Against the CAPITA 2.180% 10Mar2031, the 2.90% IPG provides a pickup of 45bps, and 31bps and 30bps for the CAPITA 3.088% 29Mar2032 and CAPITA 2.250% 27Sep2032, respectively. Compared to the AREIT 2.343% 27Aug2032, the IPG provides a pickup of 35bps. Given the similar tenor and comparable rating, the yield pickup appears relatively attractive from a credit-quality perspective.

• Overall, we see the 2.90% IPG as attractively priced over other CICT bonds, particularly given CICT's strong credit profile and the yield pickup over both its own existing curve and a comparable peer. However, any tightening from the IPG to the final price guidance (FPG) would reduce the issue yield and government-bond spread. 

Table 1: Peer Comparison