Retail real estate manager Vicinity Centres (ASX:VCX) recently issued a use of proceeds (UOP) green bond in the domestic market.
The company raised A$300 million at 165 basis points over quarterly swap, equivalent to a 4.927% with a six year term to maturity. Vicinity Centres is rated single A by S&P Global, as is the new bond.
The underlying asset pool is 21 shopping centres valued at more than A$6 billion with a five star or greater National Australian Built Environment Rating System (NABERS) energy rating.
The Vicinity green bond is aligned with global market standards for sustainable debt.
Grant Kelly, CEO and Managing Director said, “Vicinity is an industry leader in sustainability and we are pleased to leverage our green credentials to deliver our inaugural green bond issuance.
“Our commitment to creating sustainable precincts and our significant investment in transitioning our assets to a low carbon economy, over a number of years, has been recognised by investors as part of this issuance”.
Other property sector green bond issuers include Investa Office Fund, QIC Shopping Centre Fund, GPT Wholesale Office Fund and Lendlease.
For more information, see the ASX announcement.
