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Corporate syndicated green loans come to Australia

One Central Park

Frasers Property Australia announced today that it has refinanced an existing debt facility using a $600 million five-year loan derived from the LMA/APLMA Green Loan Principles – in what it claims is the first of its kind in Australia. The green loan principles place green sustainability requirements on borrowers around the use of proceeds, selection and evaluation of projects, management of proceeds and reporting.

FPA must maintain its five-star Global Real Estate Sustainability Benchmark rating in return for interest cost savings from the second year of the loan term.

Barclays Bank PLC is the underwriter, Barclays Capital Asia Ltd is the lead arranger and bookrunner, along with syndicate members ANZ, Mizuho and CTBC bank. Barclays Capital Asia is the green coordinator and ANZ is the facility agent.

Frasers Property group chief executive officer Panote Sirivadhanabhakdi said, “In Australia, our resolve to create places where resources are reused, recycled and restored for a more sustainable future has resulted in Frasers achieving five-star GRESB ratings.

“The interest cost savings on this green loan from the second year onwards if FPA’s GRESB ratings are maintained incentivises consistency and excellence in this aspect.”

FPA is evaluated for its GRESB rating using both the developer assessment for its new construction and renovations and the real estate assessment for its investment properties. FPA’s five-star rating is well ahead of the three-star global average for developer assessments and two-stars for real estate assessments.

Although this is the first Corporate Syndicated Green Loan in Australia, it is Frasers Property’s third green loan (and Frasers Property Australia’s first), having financed Frasers Tower in Singapore in September 2018 and Northpoint City South Wing last week (March 2019) using similar instruments.

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