Case studies

ICPF’s first green bond continues leadership in commercial property clean energy innovation

Investa Commercial Property Fund's (ICPF) first Green Bond continues its strong leadership in clean energy innovation in the commercial property sector.

The $100 million Australian dollar issuance, which closed oversubscribed, was certified by the Climate Bonds Initiative. Proceeds from the bonds will be used to retire existing debt facilities and will be fully allocated against a portfolio of low carbon buildings in the ICPF's portfolio.

The 10-year bonds with a semi-annual fixed coupon of 4.25 per cent per annum are rated 'A-' by Standard & Poor's (S&P).

The transaction represents a significant step for the Australian dollar green bond market, with a 10-year tenor transaction.

The CEFC cornerstoned the issuance with a $19 million commitment.

The CEFC expects to see the continued issuance of green bonds from high quality issuers across a range of sectors as key to developing the green bond investor base and the market as a whole.

The CEFC's investment in the green bond builds on an existing relationship with Investa Office Management aimed at pushing the boundaries of energy efficiency in commercial property. In December 2016, the CEFC announced its commitment of $110 million in equity as part of a $600 million capital raising for the $4.1 billion ICPF.

Read more about the ICPF green bond