Charter Hall Sees Sustainable Financing Activity Jumping to $2.4 Billion
Charter Hall, a property investment and fund management company, has announced a further $1 billion in sustainability-linked loans. The proceeds will bring the total sustainable transactions of the company to $2.4 billion, up from $1.4 billion in December last year.
The Charter Hall Office Trust (the Fund) completed these new facilities under its newly established Sustainability Linked Loan Framework, which was coordinated by the Commonwealth Bank of Australia and Westpac Banking Corporation, with sustainability coordinators Australia and New Zealand Banking Group, Bank of China, and Credit Agricole Corporate and Investment Bank.
Charter Hall’s Head of Treasury & Group Planning, Phil Schretzmeyer, said:
“Charter Hall is pleased to welcome a significant increase in sustainable finance transactions to a total of $2.4 billion. Our sustainable finance offers another opportunity for the business to integrate ESG objectives throughout our operations to deliver long term, risk-adjusted returns for investors, and lower operational costs.”
“These initiatives reflect how Charter Hall is meeting the increasing demand from tenant and investor customers for high-quality assets with strong sustainability credentials. We will continue to position our assets and portfolios to leverage sustainable finance and create strong environmental and social value across our portfolio to achieve mutual success for the business, investors, tenants, and communities.”
These facilities are connected to sustainability performance targets and internationally recognised independent sustainability reporting standards, providing the Fund with a financial benefit or cost based on its success against the Key Performance Indicators (KPIs) outlined in the loan agreements.
Sustainalytics gave a second view, finding the KPIs to be consistent with the five main components of the Sustainability-Linked Loan Principles 2022. The National Australian Built Environment Rating System (NABERS) and Green Star rating systems, operated by the NSW Department of Planning and Environment and the Green Building Council of Australia, respectively, will be used to assess the KPIs.
Charter Hall’s Group Head of ESG, Andrew Cole, said:
“Australian real estate outperforms global ESG benchmarks, largely as a result of the strong uptake of voluntary and mandatory performance rating tools like Green Star and NABERS, which provide transparent and independent assessments.”
“As the Australian economy transitions to Net Zero Carbon, Charter Hall understands that buildings have – and will continue to have – a critical role in driving low carbon outcomes, given buildings account for a quarter of Australia’s emissions and almost half of the country’s electricity use.”
Source: Charter Hall
