Frasers Property Limited (‘Frasers Property’, and together with its subsidiaries, the ‘Group’) recently announced that Frasers Property Australia (‘FPA’) has secured a corporate syndicated sustainability-linked term loan and revolving credit facility (‘SLL’). To incentivise sustainable practices, the SLL has a price reduction structure with interest cost savings from the second year onwards if FPA maintains a minimum four-star Global Real Estate Sustainability Benchmark (โGRESBโ) ratings annually.
The AUD 600 million five-year SLL, which comprises a AUD 300 million term loan to refinance a maturing loan and a AUD 300 million revolving credit facility to be used for general corporate purposes, is issued under the Sustainable Finance Framework (‘the Framework’). This is the fourth green / sustainable financing secured by the Groupโs business in Australia since FPA secured its first green loan in March 2019, which was also the first corporate syndicated green loan derived from the LMA/APLMA Green Loan Principles in Australia.
Loo Choo Leong, Group Chief Financial Officer of Frasers Property, commented, โWe are encouraged by the credit marketโs recognition of our Australia businessโs strong sustainability credentials and the Groupโs financial strength. One of Frasers Propertyโs sustainability goals is to finance the majority of our new sustainable asset portfolio with green or sustainable financing by 2024. We are pleased with our progress thus far, having secured over SGD 8 billion of green or sustainable financing across the Group since our first green loan in September 2018.โ
Frasers Propertyโs operations in Australia are certified carbon neutral under the Australian Governmentโs Climate Active Carbon Neutral Standard. FPA has set net-zero carbon target in development and operation by 2028 under approved Science-Based Targets2 . FPA has maintained a five-star GRESB rating since 2018. For its new developments in Australia, Frasers Property is aiming to achieve a five-star GRESB rating, with at least a four-star rating for its existing portfolio.
Press Release Received on Mail
