Frasers Property Australia, a subsidiary of Frasers Property, has set up its first Sustainable Finance Framework (SFF), laying down guidelines for the company to enter into sustainable finance transactions such as green or sustainability bonds.
The SFF is the first framework in Asia-Pacific that defines an entire portfolio of properties as sustainable assets, using the Global Real Estate Sustainability Benchmark (GRESB) ratings. It is also the first framework for sustainability-linked bonds and loans in Asia-Pacific to come from a real estate company.
The funds raised under the SFF can be used to finance a green portfolio with a minimum of four-star GRESB rating. The company aims to achieve a five-star rating for its new developments and at least a four-star rating for its existing portfolio based on the GRESB. It also targets to be carbon-neutral in development and operation by 2028.
The SFF follows an A$2 billion ($1.86 billion) multicurrency debt issuance programme established on Feb 7 this year by Frasers Property AHL, a subsidiary of Frasers Property Australia.
Frasers Property says it has been actively tapping into green financing since its first green loan in September 2018 and supporting the development of the green finance market in this region. In January this year, Frasers Property received the Asset Triple-A Sustainable Capital Markets Regional Awards 2019 – Best Green Loan in Real Estate – for its $750 million term loan with a A$500 million “green tranche” raised by its subsidiary, Frasers Property Treasury.
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