Frasers issues $200m notes to fund sustainability

FRASERS Property AHL Limited has issued S$200 million sustainability notes, to finance the group’s Australian sustainability portfolio.

The sustainability notes are due October 2028 at a fixed interest rate of 3% per annum and represent the inaugural notes issuance for the Australian business and the second sustainability notes issuance in the SGD bond market.

The notes are being issued under FPAHL’s February 2020 established A$2 billion multicurrency debt issuance programme, with net proceeds raised to finance or refinance new or existing qualifying assets and projects

Assets and projects will qualify if they meet the standard outlined by the Eligibility Criteria for Eligible Green or Sustainable Projects in Fraser Property Australia’s Sustainability Finance Framework, established in 2020 and based off GRESB ratings.

OCBC Bank is the sole lead manager for the transaction, with the bank acting as the sustainable finance advisor in preparation of the framework.

In July, Frasers Logistics & Commercial Trust raised S$150 million in sustainability notes, in line with its goal of using green and sustainable financing to fund the lions sum of its sustainable asset portfolios by 2024.

This goal is one of five declared by Frasers in order for the group to become a net-zero carbon corporation by 2050.

“A strong focus on green and sustainable financing is integral to being a purpose-led organisation,” said Loo Choo Leong, group CFO of Frasers Property.

“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.”

In April Frasers secured its 15th syndicated sustainability linked loan for $300 million with an accordion option of A$25 million was secured under the LMA/APLMA Sustainability Linked Loan Principles.

While in also in July, the Australian headquarters of Frasers Property Australia and Frasers Property Industrial were the first to achieve WELL recertification.

Frasers has since its first green loan in September 2018, secured over S$6 billion in green and sustainable financing.