ISPT issues $1.5 billion syndicated sustainably-linked loan facility

22 April 2024

Leading Australian fund manager ISPT has announced a significant milestone in its sustainability-focused financing strategy with the arrangement of a $1.5 billion sustainably linked Syndicated Term Loan.

This facility, one of the largest for any Australian real estate fund manager, brings ISPT’s Sustainability-Linked Loans (SLLs) to a total of $5.75 billion – solidifying its position as a market leader in sustainable finance.

The transaction, which is also one of the largest real estate credit deals in Australia in recent years, saw Commonwealth Bank of Australia (CBA), ANZ, Westpac and HSBC acting as Joint Mandated Lead Arrangers and Bookrunners and Joint Sustainability Coordinators.

The $1.5 billion facility is split evenly across 5- and 7-year tenors with 20 lenders participating in the transaction. In addition, ISPT also secured an additional $400 million in bilateral SLL facilities and re-financed $1 billion, bringing ISPT Core Fund’s total debt package to $6.3 billion.

Commenting on the significance of this financing arrangement, Steven Peters, Chief Sustainability Officer, ISPT stated: “Connecting our debt facilities through SLLs that are aligned with our ESG Strategy is another way that we hold ourselves accountable for delivering on our sustainability commitments. We believe that this transaction reinforces ISPT’s approach to embedding responsible investment into every facet of our operations.”

The SLLs will be tied to ISPT’s existing Sustainability Performance Targets, which encompass key metrics in emissions intensity, waste reduction, water consumption, and labour certification, aligned with the key pillars of ISPT’s ESG framework, including Climate Change, Resource Efficiency and Supply Chain.

This is ISPT’s third SLL having restructured the ISPT Retail Australia Property Trust’s (IRAPT) bank facilities as SLLs in September 2021 and the completion of $2.8 billion SLL for the ISPT Core Fund in April 2021.