News & Media

Frasers Property Secures First Corporate Syndicated Green Loan in Australia

Sustainability  |  News  |  26 March 2019
Frasers Property Australia
Media Release
Frasers Property Australia
Chullora solar panels

  • Pricing structure incentivises sustainable practices
  • Marks the third green loan for the global real estate Group 


Frasers Property Limited (“Frasers Property”, and together with its subsidiaries, the “Group”) today announced that Frasers Property Australia (“FPA”) has secured the first corporate syndicated green loan in Australia derived from the LMA/APLMA Green Loan Principles1. To incentivise sustainable practices, the green loan has a reducing pricing structure with interest cost savings from the second year onwards if FPA’s five-star Global Real Estate Sustainability Benchmark (“GRESB”) ratings are maintained. The A$600 million five-year term loan will be used to refinance an existing debt facility due in 2020.

This syndicated green loan in Australia is Frasers Property’s third green loan. Last week, Frasers Property announced its Green Club Loan for its retail mall in Singapore, Northpoint City South Wing. In September last year, it secured its first green loan for Frasers Tower in Singapore.

Mr Panote Sirivadhanabhakdi, Group Chief Executive Officer of Frasers Property, commented, “Sustainability is an important long-term commitment in Frasers Property’s corporate agenda. In Australia, our resolve to create places where resources are reused, recycled and restored for a more sustainable future has resulted in FPA achieving five-star GRESB ratings. The interest cost savings on this green loan from the second year onwards if FPA’s GRESB ratings are maintained incentivises consistency and excellence in this aspect.”

Creating a more sustainable future is at the forefront of FPA’s business approach, underpinned by its sustainability strategy, A Different Way. A Different Way focuses on three core areas – “Progressive Thinking”, “People Focused” and “Restoring Resources” – with each area linked to ambitious goals that articulate how FPA will make a difference. These include specific and measurable targets in each core area, including targets in relation to responsible investment, biodiversity and community connectedness.

FPA is evaluated by GRESB in two segments. The Developer Assessment assesses FPA’s development properties, taking indicators from new construction and major renovations into consideration, while the Real Estate Assessment evaluates FPA’s investment properties. FPA scored the maximum five-star rating in both the Developer Assessment and the Real Estate Assessment in 2018, outperforming the global average of three-star rating and two-star rating, respectively.

The green loan was underwritten by a syndicate of four banks:

Mandated Lead Arrangers Underwriters and Bookrunners 

Barclays Bank PLC (as Underwriter) and Barclays Capital Asia Limited (as Mandated Lead Arranger and Bookrunner); Australia and New Zealand Banking Group Limited; Mizuho Bank, Ltd.; and CTBC Bank Co., Ltd.  

Green Coordinator

Barclays Capital Asia Limited

Facility Agent

Australia and New Zealand Banking Group Limited 

This green loan was issued under Frasers Property’s Green Loan Framework (the “Framework”), established under the Green Loan Principles. The Framework details clear guidelines on how Frasers Property will evaluate and select eligible green projects based on the Group’s sustainability objectives, as well as manage the net proceeds from green loans, including reporting on the manner in which the net proceeds are allocated. 


1The Green Loan Principles were launched by the Loan Market Association (“LMA”) and Asia Pacific Loan Market Association (“APLMA”) in March 2018. The Green Loan Principles set out a clear framework to promote integrity in the development of the green loan market by clarifying the characteristics of a green loan, based around the following four core components:

i. Use of Proceeds

ii. Project Selection and Evaluation

iii. Management of Proceeds

iv. Reporting

Frasers Property Australia
Media Release
Frasers Property Australia