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Frasers Property Australia Pty Limited has set up its first Sustainable Finance Framework.

This is the first framework defining an entire portfolio as sustainable assets using the Global Real Estate Sustainability Benchmark (GRESB) ratings and is also the first of its kind from a real estate company in the Asia Pacific for sustainability-linked bonds and loans.

It follows an announcement last week Frasers Property AHL Limited, a subsidiary of Frasers Property Australia, has established an $A2 billion Multicurrency Debt Issuance Program.

The framework can be used in conjunction with the program, according to Frasers Property Australia chief financial officer, Anthony Boyd.

As part of the Fraser Group’s focus on building a resilient business, sustainability is integrated across its business.

He said the group has been actively tapping into green financing since its first green loan in September 2018, supporting the development of the green finance market in this region.

In January 2020, Frasers Property received the Asset Triple A Sustainable Capital Markets Regional Awards 2019 – Best Green Loan in Real Estate – for its $750 million term loan with a A$500 million “green tranche” raised by its subsidiary, Frasers Property Treasury Pte Ltd.

The Framework will provide overarching criteria and guidelines for Frasers Property Australia and its subsidiaries to enter into multiple sustainable finance transactions, including but not limited to, green or sustainability bonds and loans as well as sustainability-linked bonds and loans.

Funds raised under this Framework can be used to finance a green portfolio with minimum 4 Star GRESB rating and may also be used to link commercial incentives with its sustainability targets. 

In addition to the reporting as stipulated in the Framework, Frasers Property Australia is committed to continuing its disclosure on sustainability targets and providing regular updates, the company said in a statement released today.

Frasers Property Australia aims to achieve a 5-Star rating for its new developments and at least a 4-Star rating for its existing portfolio based on the GRESB.

In addition, Frasers Property Australia plans to be carbon neutral in development and operation by 2028. 

Deloitte Touche Tohmatsu performed a reasonable assurance engagement in accordance with ASAE 3000 and has confirmed that the Framework has been properly prepared, in all material respects, in accordance with the relevant international principles and guidelines.

 

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