CEFC invests $20m in Investa Office Fund inaugural green bond issue
30 March 2017
The CEFC has committed $20 million to the Investa Office Fund (IOF) inaugural Green Medium Term Note, the first certified Australian dollar green bond to be issued by an Australian REIT.
IOF said the $150 million bond was received favourably by the market and was over-subscribed. It said proceeds from the green bond issue will be 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.
Richard Lovell, CEFC Executive Director and Debt Markets Lead said: "We congratulate Investa on its continued leadership in clean energy innovation in the commercial property sector. This transaction is the first AUD green bond issuance by a non-financial corporate and the first certified issuance by an Australian property entity in any jurisdiction. This 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."
Read more about the IOF green bond in this ASX announcement.
The CEFC and Investa Office Management recently joined forces to push the boundaries of energy efficiency in commercial property, reinforced by Investa's market-leading commitment to Science Based Targets. The CEFC's $110 million equity investment is its largest new commercial property commitment to date, and will help Investa finance the development of the $900 million 33-storey energy efficient office tower at 60 Martin Place in Sydney. The building is being designed to achieve a National Australian Built Environment Rating System (NABERS) rating in excess of 5.5. stars, and a 6-Star Green Star rating.
Read more about this landmark transaction.
Media release, 2017