10 Feb 2020
SINGAPORE, 10 FEBRUARY 2020
Frasers Property Limited (“Frasers Property”, and together with its subsidiaries, the "Group"), today announced that its subsidiary, Frasers Property Australia Pty Limited (“Frasers Property Australia”), has set up its first Sustainable Finance Framework (“the Framework”) (Link). This is the first framework defining an entire portfolio as sustainable assets using the Global Real Estate Sustainability Benchmark (GRESB) ratings and is also the first of its kind framework for sustainability-linked bonds and loans in Asia Pacific from a real estate company.
This follows the Group’s announcement on 7 February 2020 that Frasers Property AHL Limited, a subsidiary of Frasers Property Australia, has established an AUD 2 billion Multicurrency Debt Issuance Programme (the "Programme") (Link). The Framework can be used in conjunction with the Programme. As part of the Group’s focus on building a resilient business, sustainability is integrated across its business. The Group has been actively tapping into green financing since its first green loan in September 2018, supporting the development of the green finance market in this region. In January 2020, 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 Pte Ltd.
The Framework will provide overarching criteria and guidelines for Frasers Property Australia and its subsidiaries to enter into multiple sustainable finance transactions, including but not limited to, green or sustainability bonds and loans as well as sustainability-linked bonds and loans. Funds raised under this Framework can be used to finance a green portfolio with minimum 4 Star GRESB rating1 and Frasers Property Australia may potentially link commercial incentives with its sustainability targets.
In addition to the reporting as stipulated in the Framework, Frasers Property Australia is committed to continuing its disclosure on sustainability targets and providing regular updates. Frasers Property Australia aims to achieve a 5-Star rating for its new developments and at least a 4-Star rating for its existing portfolio based on the GRESB. In addition, Frasers Property Australia plans to be carbon neutral in development and operation by 2028.
Deloitte Touche Tohmatsu performed a reasonable assurance engagement in accordance with ASAE 3000 and has confirmed that the Framework has been properly prepared, in all material respects, in accordance with the relevant international principles and guidelines2.
Australia and New Zealand Banking Group Limited, Barclays Bank PLC and Oversea-Chinese Banking Corporation Limited acted as joint sustainability coordinators for the setting up of this Framework.
1 GRESB evaluates performance against seven sustainability aspects with approximately 50 sustainability performance indicators relating to energy, greenhouse gas emissions, water, waste, and health and safety. This assessment considers both environmental and social aspects of property portfolios. A 5-Star rating is attributable to entities with scores within the top 20% and a 4-Star rating is attributable to entities with scores within the top 40%.
2 Green Bond Principles 2018 and Sustainability Bond Guidelines 2018 by the International Capital Market Association; Green Loan Principles 2018 and Sustainability Linked Loan Principles 2019 by the Loan Market Association, Asia Pacific Loan Market Association and Loan Syndications and Trading Association