CEFC committed AU$20 million to the Investa Office Fund (IOF) inaugural Green Medium Term Note, the first certified Australian dollar green bond to be issued by an Australian REIT. IOF said the AU$150 million bond was received favourably by the market and was over-subscribed. It said proceeds from the green bond issue will be used to reduce IOF’s existing bank debt facilities and will be fully allocated against a portfolio of low carbon buildings within IOF’s portfolio.
This transaction is the first AUD green bond issuance by a non-financial corporate and the first certified issuance by an Australian property entity in any jurisdiction. This transaction provides a model for the broader property sector in seeking new sources of finance for clean energy projects. It also demonstrates the potential for different issuer types to access the green bond market and strengthens the case for investors to expand their mandates for investment in green bonds.