Frasers Property issues S$200M sustainability notes to finance Australia portfolio

Sign at Frasers Tower, owned by Frasers PropertySign at Frasers Tower, owned by Frasers Property

Frasers Property AHL (FPAHL), a subsidiary of Frasers Property Australia, has issued S$200 million sustainability notes due October 2028 at 3 percent, marking the group’s second issuance of sustainability notes this year, Frasers Property said in a filing to SGX Thursday.

The net proceeds will be used to finance or refinance ne or existing assets or projects meeting the eligibility criteria for green or sustainable projects under Fraser Property Australia’s framework, the filing said.

The offering was in line with the group’s sustainability goal to finance the majority of its new sustainable asset portfolios with green and sustainable financing by 2024, Frasers Property said.

Loo Choo Leong, group chief financial officer of Frasers Property, said focusing on green and sustainable financing was integral to being a purpose-led organization.

“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,” Loo said in the statement.

OCBC is the sole lead manager for the deal and acted as the sustainable finance advisor in preparing the group’s framework for sustainable finance, the filing said.

The notes are the first under FPAHL’s A$2 billion multicurrency debt issuance program set up in February 2020, the filing said.

But it’s the second sustainability issuance by the group this year, after Frasers Logistics & Commercial Trust raised S$150 million in sustainability notes in the Singapore dollar bond market in July, the filing said.