Investa Commercial Property Fund (ICPF) continues to capitalise on its ESG performance and strong track record as a leader in sustainable finance with the announcement of a new $140 million Green Bond Issuance. This will add to ICPF’s existing $770 million of green bond and debt facilities.
Proceeds from the new bond will be used to retire existing debt facilities and will be fully allocated against a portfolio of low carbon buildings in ICPF's portfolio.
The Green Bond issuance has been approved by the London-based Climate Bonds Initiative (CBI), an international, investor-oriented, not-for-profit organisation. CBI is focused on mobilising the $100 trillion bond market towards climate change solutions and is responsible for certifying around 20-25% of green bonds globally.
The CBI certification places the ICPF portfolio in the top 15% of buildings in their city, based on emissions intensity.
Commenting on the issuance, ICPF Fund Manager, Brendan Looby said: "We're very pleased with the level of interest which resulted in us increasing the size of the bond issuance from the initial target."
"CPF’s impressive track record spans almost 20 years. The Fund has leading ESG credentials, and its resilience was evident during the pandemic with the completion of an equity raise, satisfying liquidity requests and strong leasing volumes executed at below market incentives, which averaged 23% for FY21. All of these factors resulted in strong demand for the offering,” he continued.
Margot Black, General Manager, Corporate Sustainability said: “Transforming the Real Estate sector through proactive ESG initiatives sits at the heart of Investa’s business strategy. We take pride in our reputation as an office fund of choice for responsible investment through the identification of low carbon investment opportunities."
“ICPF’s Green Bond proceeds will be used to deliver our net zero pathway and objectives to create a positive, measurable social and environmental impact on society and the broader environment,” she continued.
Investa partnered with ANZ to issue CBI-certified Green Bonds in 2017, including a $100 million green bond issued by ICPF, which was a first in the Australian real estate sector.
In 2019, ICPF also worked with ANZ to secure the first internationally recognised Green Loan within the commercial real estate industry. ANZ has again partnered with ICPF on the latest issuance. ANZ Managing Director, Corporate Finance Christina Tonkin said: “ICPF is a leader in developing sustainable infrastructure in Australia as part of its commitment to a net zero carbon economy. ANZ is pleased to have supported ICPF in their latest foray in the Green Bond market.”
Learn more about ICPF.