Stockland Issues First Australian Corporate Green Bond
Wednesday, 5th November 2014 at 8:42 am
One of Australia's largest property developers has priced the first green bond issued by an Australian corporate.
The green bond is a debt instrument where the proceeds are used to fund eligible environmentally sustainable projects.
Stockland said their green bond will fund the development and redevelopment of sustainable, ‘Green Star’-rated retail, commercial, residential and retirement living projects
Stockland Managing Director and CEO, Mark Steinert, said the EUR300 million, 7 year Issue bond would enable Stockland to further invest in leading edge sustainable projects.
“We currently have the highest number of Green Star rated shopping centres in Australia and have completed the first Green Star rated retirement living village, Affinity in Perth. Our largest ever residential community project, Caloundra South on the Sunshine Coast in Queensland, is the first Green Star residential communities pilot project in the country,” Steinert said.
“This green bond will help support our continued investment in projects like these to the benefit of our customers, communities and investors.”
The Green Building Council of Australia (GBCA), issuers of Green Star ratings, lauded the decision.
“Green bonds will encourage investors to consider potential assets on the basis of their long-term sustainable returns. Stockland’s leadership will help us build a more sustainable property industry,” GBCA Chief Operating Officer, Robin Mellon, said.
“Assets with 4 Star Green Star ratings, representing ‘best practice’ in sustainable building design and construction, have been proven to deliver higher returns on investment than non-green buildings, attract higher rents, better employees, more grants and partnerships, and are symbols of corporate commitment to leadership in sustainability,” he said.
Stockland was named one of the Global 100 Most Sustainable Corporations in the World at the World Economic Forum in Davos, Switzerland in 2014, for the fifth consecutive year.
They are among a growing global community of corporates beginning to embrace green bonds. Toyota raised $US1.75 billion earlier this year to finance the development of its next generation of low-emission cars, while Unilever had a $US410 million issue targeting water use and waste disposal.