Charter Hall, QIC ink $7.1b in green loans
Two heavyweight investment houses this week converted bank loans to Sustainability Linked Loans (SSLs) to the tune of $7.1 billion.
QIC has obtained $3.75b for its two largest trusts – the QIC Property Fund (QPF) and QIC Town Centre Fund (QTCF).
ANZ, CBA, and MUFG, the latter, Japan’s biggest bank, are the joint sustainability coordinators.
CAF certification closer: QIC
SSL interest rate margins are subject to key performance indicators.
“These SSLs build on QIC Real Estate’s track record in sustainable finance, having issued a $300m Climate Bond Initiative (CBI) certified Green Bond in 2019 for the QIC Town Centre Fund – a world first for the retail property sector,” QIC Real Estate managing director, Deborah Coakley, said.
The loans will also help QPF and QTCF assets obtain a Cleaning Accountability Framework certification – which promotes ethical labour practices.
Charter Hall converts $3.35b for flagship fund
Meanwhile, Charter Hall Group has underwritten $3.35b of green loan facilities on behalf of its $8.6b Prime Office Fund.
ANZ, CBA and MUFG are again the mandated lead arrangers – along with HSBC, Westpac and SMBC, the latter which is also Japanese (story continues below).
“The strategic capital management initiative has enabled the fund to leverage its market-leading sustainability credentials and implement a best-in-class finance platform providing significant financial and operating flexibility,” a Charter Hall spokesperson said.
“This will facilitate the delivery of CPOF’s premium grade development pipeline and strategic objective of providing long term outperformance for its investors,” they added.
“This transaction grows Charter Hall’s platform-wide sustainable finance to more than $9b, 100 per cent of which is in the Office sector, reflecting its continued progress toward integrating sustainability into its operating assets,” according to the representative.
“Further, the green loan facilities secured in this transaction have been certified by the Climate Bond Initiative and independently verified by DNV and KPMG, ensuring a thorough and transparent approach”.
The fund’s weighted average debt maturity profile has now been extended – to 5.2 years (a mix of tranches from three to 10 years).
Proceeds will be tipped into new developments including Chifley South in the Sydney CBD (artist’s impression, top), which is under construction, and 360 Queen St in Brisbane.
Coincidentally, QIC pre-committed to nearly 10,000 sqm of Charter Hall’s 360 Queen St in June.
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