SG Morning Highlights | CDL Secures $400m Sustainability-Linked Loan from DBS with TNFD-Aligned Targets

Moomoo News SG wrote a column · Jun 27 09:07

SG Morning Highlights | CDL Secures $400m Sustainability-Linked Loan from DBS with TNFD-Aligned Targets

Good morning mooers! Here are things you need to know about today's Singapore markets:

●Singapore shares opened lower on Thursday; STI down 0.07%

●Singapore Prime Office Rents Pause After Three Years of Continuous Growth: CBRE

●Singapore's Manufacturing Output Rebounds with 2.9% Rise in May, Led by Electronics

●Stocks to watch: City Developments, SIA, Keppel Reit

●Latest share buy back transactions

-moomoo News SG

Market Snapshot

Singapore shares opened lower on Thursday. The $FTSE Singapore Straits Time Index (.STI.SG)$ dropped 0.07 percent to 3329.37 as at 9:06 am.

Advancers / Decliners is 48 to 65, with 86.22 million securities worth S$131.10 million changing hands.

Breaking News

Singapore Prime Office Rents Pause After Three Years of Continuous Growth: CBRE

According to CBRE, rents of Grade A offices in Singapore's core central business district (CBD) have paused after rising non-stop for the past 12 quarters, holding steady at $11.95 psf per month in the second quarter. Chinese tech and legal firms are driving the demand for workspace in Singapore's core CBD while the surge of incoming new supply and a temporary increase in vacancies have tempered rental growth for this quarter. CBRE kept its rental growth forecast unchanged at 2% to 3% for the full year 2024.

Singapore's Manufacturing Output Rebounds with 2.9% Rise in May, Led by Electronics

Singapore's manufacturing output saw a surprise 2.9% YoY increase in May, rebounding from a 1.2% drop in April, thanks to a strong performance by the electronics sector. Excluding biomedical manufacturing, which contracted by 42.6% YoY, the output would have risen by 10.1% YoY. Electronics did most of the heavy lifting with a 20% YoY jump in output last month, mainly from the electronics modules and components (30.2%), computer peripherals and data storage (24.9%), and the semiconductors and consumer electronics (20.6%) segments. The chemicals segment also went up 7.9% YoY, while general manufacturing and biomedical manufacturing declined.

Stocks to Watch

$CityDev (C09.SG)$: City Developments Limited (CDL) has secured a $400m sustainability-linked financing from DBS Bank, with nature conservation targets aligned with the Taskforce on Nature-related Financial Disclosures' (TNFD) recommendations. The loan criteria include a set of ambitious performance targets set by CDL, incentivising the company's ongoing efforts to reach major environmental, social, and governance (ESG) milestones. The proceeds of the financing will be used for general corporate funding and working capital purposes, including the redevelopment of CDL's existing assets. CDL has now secured over $8b in sustainable financing since 2017 and was the first company in Singapore to publish TNFD-aligned disclosures in its latest Integrated Sustainability Report 2024.

$SIA (C6L.SG)$: Singapore Airlines has extended its cargo handling partnership with Worldwide Flight Services (WFS) in the United Kingdom, France, and Belgium for three more years. The partnership includes cargo handling and UK domestic road feeder services at London Heathrow and Manchester airports, as well as cargo handling in preparation for the launch of new direct flights between Singapore Changi Airport and London Gatwick Airport. The airline also awarded a three-year contract extension with WFS in France, bringing their partnership to over 40 years. The two companies have been working together in Brussels since 2021.

$Keppel Reit (K71U.SG)$: Keppel Reit has established a green financing framework that will serve as a reference for all green finance transactions issued by the real estate investment trust (REIT), according to its manager. Keppel Reit's sustainability-focused funding made up 63% of its total borrowings as of March 31, 2024. The establishment of the green financing framework aims to further support the REIT's sustainability efforts. The units of the REIT closed flat at S$0.84 before the announcement.

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