Frasers Property has issued sustainability notes to finance its local business’ sustainable portfolio – the $200m sustainability notes are due October 2028, at a fixed interest rate of 3 per cent per annum.
Frasers Property CFO Mr Loo Choo Leong commented the group had always had a strong focus on green and sustainable financing.
“It is integral to being a purpose-led organisation. We are encouraged by investors’ recognition of the strong sustainability credentials in our Australian portfolio and the group’s financial strength,” he said.
“Creating places for good with long-term value for all stakeholders requires sustainable financing that promotes better environmental and social outcomes.”
The sustainability notes are the first to be issued under FPAHL’s $A2 billion multicurrency debt issuance programme, which was established in February 2020.
Net proceeds raised will be used to finance or refinance, in whole or in part, new or existing qualifying assets and projects as described under the eligibility criteria for eligible green or sustainable projects in FPA’s Sustainable Finance Framework.
Established in 2020, the framework was the first in Asia Pacific to define an entire portfolio as sustainable assets using the GRESB ratings.
This is the second sustainability notes issuance by the Group in 2021. In July, Frasers Logistics & Commercial Trust raised $150 million in sustainability notes in the SGD bond market.
Financing the majority of its new sustainable asset portfolios with green and sustainable financing by 2024 is among the five sustainability goals, which will guide the Group towards being a net-zero carbon corporation by 2050.
To date, Frasers Property Group has secured green and sustainable financing totalling over S$6 billion since it entered into its first green loan in September 2018.
OCBC Bank is the sole lead manager for the transaction, while also acting as the sustainable finance advisor in the preparation of the framework.