23 Sep 2021
Frasers Property is targeting a 6 Star Green Star Communities rating for Midtown MacPark, its residential development in Sydney, Australia, with a vision for the community to be carbon neutral in operation. Proceeds raised from the S$200 million seven-year sustainability notes can be used to finance or refinance new or existing qualifying assets and projects as described under the Eligibility Criteria for Eligible Green or Sustainable Projects in Frasers Property Australia’s Sustainable Finance Framework.
SINGAPORE, 23 SEPTEMBER 2021
Frasers Property Limited (“Frasers Property”, and together with its subsidiaries, the “Group”) today announced that Frasers Property AHL Limited (“FPAHL”), a subsidiary of Frasers Property Australia (“FPA”), has issued S$200 million sustainability notes due October 2028 at a fixed interest rate of 3 per cent per annum.
Mr Loo Choo Leong, Group Chief Financial Officer of Frasers Property, commented, “A strong focus on green and sustainable financing 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. Creating places for good with long-term value for all stakeholders require sustainable financing that promotes better environmental and social outcomes.”
The sustainability notes are the first to be issued under FPAHL’s A$2 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 (“the 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 S$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 of the Group, which will guide the Group towards being a net-zero carbon corporation by 2050. To date, the Group has secured green and sustainable financing totalling over S$6 billion since the Group entered into its first green loan in September 2018.
OCBC Bank is the sole lead manager for the transaction. OCBC Bank also acted as the sustainable finance advisor in the preparation of the Framework.