Investa Commercial Property Fund has announced a 10 year, $100 million dollar Green Bond issuance, the first one ever to be issued in Australian dollars for an Australian REIT.
The issuance, which was oversubscribed, was approved as a ‘Certified Climate Bond’ by the London-based Climate Bonds Initiative, an international, investor-oriented, not-for-profit organisation focused on mobilising the $100 trillion bond market towards climate change solutions.
It is Investa’s third borrowing in the Australian dollar MTN market and its fourth in debt capital markets, most recently closing a US$150 million US Private Placement in December 2016.
ICPF Fund Manager Jason Leong said diversifying their sources of debt with Green Bonds demonstrated support for the growth of the green finance market and reflected the company’s long-term commitment to transitioning to a low carbon economy.
“This is yet another way Investa is proactively responding to investor demand for low carbon economy investment opportunities, further strengthening our position as a fund of choice for those looking to invest responsibly.”
Demand for the issuance was strong amongst both ‘green’ and general debt investors. Clean Energy Finance Corporation (CEFC), an existing equity investor in ICPF is a cornerstone investor, along with Australian Ethical Super.
Australian Ethical Investment Managing Director Phil Vernon said investment in quality green bonds helps drive essential capital to the climate solutions and energy efficient infrastructure needed for the transition to a net-zero emissions world.
“Coupled with the underlying quality of the ICPF portfolio and the Fund’s performance, there was a compelling case for our investment in the ICPF Green Bond.”
The Fund’s portfolio of 14 office assets valued at more than $4.1 billion 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.
The transaction was jointly led by ANZ and CBA, with a semi-annual, fixed coupon of 4.25% and a maturity of April 21, 2027.