Investa Commercial Property Fund has closed Australia’s first green loan for $170 million and achieved Australia’s first verification of a green loan from the Climate Bonds Initiative.
To qualify for a green loan, the fund developed a green debt framework, which articulates the use and management of proceeds from the facility. The framework was assured by EY and allows for the expansion of the fund’s rolling green debt facilities over time.
The Investa Commercial Property Fund is placed in the top 2% in the Global Real Estate Sustainability benchmark.
To align with its green debt framework and maximise impacts, the fund tagged its entire portfolio against the CBI Low Carbon Building Criteria carbon emission thresholds, which require the portfolio to perform in the top 15% in their relative city in terms of carbon intensity.
“We are very proud to be the first Australian fund to secure a green loan,” said ICPF fund manager Jason Leong. “We’ve worked hard to ensure the whole portfolio meets the rigorous standards of the Climate Bonds Initiative, which optimises the application of the funds.”
Leong said the loan links the fund’s debt funding with an emissions intensity standard for its portfolio, creating financial opportunity via strong environmental
ICPF’s green debt framework articulates the management and use of proceeds in line with the green bond principles (GBP) and green loan principles (GLP), a set of voluntary guidelines used globally that align with Climate Bonds Initiative certification requirements.
The proceeds will be used to refinance an existing, revolving debt facility and will be fully allocated against the entire portfolio.
ICPF’s portfolio of 15 office assets is valued at more than $5.1 billion and includes interests in some of Australia’s leading office buildings, including 420 George Street, Sydney, Deutsche Bank Place at 126 Phillip Street, Sydney, and 567 Collins Street, Melbourne.