Frasers Property secures green financing for Australia business

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

Frasers Property has secured a corporate syndicated sustainability-linked term loan and revolving credit facility for its Australia business, the property developer said in a filing to SGX Monday.

The company said it obtained a A$600 million five-year sustainability-linked loan, including a A$300 million term loan to refinance a maturing loan and a A$300 million revolving credit facility for general corporate purposes. The financing was issued under the company’s sustainable finance framework, and was underwritten by a syndicate of three banks, the filing said.

Under the deal, Frasers Property will receive interest cost savings from the second year if the Australia business maintains a minimum four-star Global Real Estate Sustainability Benchmark (GRESB) rating annually, the filing said. Frasers Property Australia has maintained a five-star GRESB since 2018, the company said.

“We are encouraged by the credit market’s recognition of our Australia business’s strong sustainability credentials and the group’s financial strength,” Loo Choo Leong, group chief financial officer for Frasers Property, said in the statement.

“One of Frasers Property’s sustainability goals is to finance the majority of our new sustainable asset portfolio with green or sustainable financing by 2024. We are pleased with our progress thus far, having secured over S$8 billion of green or sustainable financing across the group since our first green loan in September 2018.”

The financing marked the fourth time Frasers Property Australia has secured green/sustainable financing, the filing said.

Frasers Property’s Australia operations are certified carbon neutral under the Australian government’s Climate Active Carbon Neutral Standard, the filing said.

The mandated lead arrangers, underwriters and bookrunners for the deal were Barclays Bank, Barclays Capital Asia, Mizuho Bank and UOB, the filing said. Barclays Capital Asia was the sustainability coordinator, the filing said.