Case studies

Investa Office Fund green bond supports clean energy innovation in commercial property sector

Sydney istock
Climate Bonds
Energy efficiency

Investa Office Fund (IOF) is the first Australian REIT to issue a certified Australian dollar green bond. The bond supports clean energy innovation in the commercial property sector.

WATCH: Investa - lowering emissions in property

Proceeds from the issuance are being used to reduce IOF's existing bank debt facilities and will be fully allocated against a portfolio of low carbon buildings within IOF's portfolio.

The transaction provides a model for the broader property sector in seeking new sources of finance for clean energy projects.

It also demonstrates the potential for different issuer types to access the green bond market and strengthens the case for investors to expand their mandates for investment in green bonds.

The CEFC committed $20 million to the $150 million bond which was received favourably by the market and closed over-subscribed. Read more about the IOF green bond in this ASX announcement.

The CEFC also has an equity stake in the Investa Commercial Property Fund

National, Climate Bonds, Property, Energy efficiency