Frasers Property secures $587.9m green financing for Australian business
It is the fourth green financing for its Australian business.
Real estate company, Frasers Property Limited, said its Australian business secured $587.9m (A$600m) five-year sustainability-linked term loan and revolving credit facility (SLL), the latter’s fourth sustainable financing.
Frasers Property Australia’s (FPA) loan is composed of a $294m (A$300m) term loan to refinance a maturing loan and $294m (A$300m) revolving credit facility that will be used for general corporate purposes under the sustainable finance framework.
To incentivise eco-friendly practices, the SLL has a price reduction structure with interest cost savings from second year onwards if FPA maintains a minimum four-star Global Real Estate Sustainability Benchmark ratings yearly.
Following this, Loo Choo Leong, group chief of financial officer of Frasers Property, disclosed that their goal is to fund the majority of their sustainable asset portfolio with sustainable financing in the next two years.
“We are pleased with our progress thus far, having secured over $8b of green or sustainable financing across the group since our first green loan in September 2018,” Leong said.
$1 = A$1.02