Australia’s largest ever Sustainability Linked Loan facility
Australia’s largest Sustainability Linked Loan facility
In alignment with our commitment to ESG excellence, ISPT has restructured the bank facilities of two Funds into a Sustainability Linked Loan (SLL) format – the ISPT Core Fund’s bank facilities of $2.8B, and the ISPT Retail Australia Property Trust’s (IRAPT) bank facilities of $495M. The industry-leading restructure aligns each Fund’s bank debt arrangements with our ESG strategy and goals and builds on our commitment to create better futures for our Investors, customers, communities and teams.
How it works
The SLL rewards environmentally and socially sustainable outcomes with lower margins, provided sustainability performance targets are exceeded. Increased margins will apply if minimum thresholds are not met. The SLL adds an extra layer of transparency and accountability to our operations and ensures we’re in 100% alignment with our ESG strategy and goals.
Why an SLL format is important to us
ISPT takes a responsible approach to investing, where everything we do is underpinned by our commitment to ESG excellence, including the way debt is raised and applied across our Funds. We see SLL’s as an integral part of our capital management strategy and a reflection of our commitment.
Our target metrics
The targets and metrics used are ambitious and meaningful to our Investors, customers, communities and teams.
We commit to improving the sustainability performance of commercial and retail properties in the ISPT Core Fund and IRAPT across four key areas:
These areas have been negotiated with the coordinating banks based on industry benchmarks and historical performance data from 100% owned properties where ISPT has operational control.
Our third-party auditor, EY, will undertake annual reviews of our performance against the pre-determined sustainability performance targets. All targets are clearly specified in the documentation for each SLL.
Details of our approach to the use of sustainable debt are outlined in the ISPT Sustainable Debt Framework.