Australian group secures first green loan under new finance framework
Cromwell Property Group has secured its first ever green loan for a real estate trust.
This is the inaugural transaction under the Australian real estate company’s new Sustainable Finance Framework and will involve transitioning an existing A$130 million ($89 million) bilateral loan with Commonwealth Bank of Australia to a green loan certified by the Climate Bonds Initiative.
The debt facility is for the Cromwell Riverpark Trust, which owns Energex House, a 6-star NABERS Energy rated office building in Brisbane.
Cromwell head of ESG Lara Young said: “The Climate Bonds Low Carbon Buildings Criteria was designed with an ambition of a zero-carbon future in 2050. Obtaining this type of loan requires issuers, like Cromwell, to embed transformative steps, not incremental improvements, for rapid decarbonisation.
“By leveraging green or sustainability linked debt, Cromwell Property Group can move significantly closer to meeting our current and future ESG responsibilities, including a Cromwell portfolio Net Zero Scope 1 and 2 target for 2035.”