Brookfield secures green loan in Perth as Asian market expands

Sydney

CANADA'S largest alternative asset manager has secured a green loan for commercial towers in Australia, adding to signs that the market for such fundraising in the Asia-Pacific region is catching up with elsewhere in the world.

Brookfield Properties, a subsidiary of Brookfield Asset Management, got the A$880 million (S$830 million) loan to refinance facilities that were used for the two energy-efficient office towers in Perth in Western Australia.

The financing is the largest single-asset green loan syndication completed Down Under.

Demand is growing globally for financing that meets environmental, social and governance standards. The Asia-Pacific region has had about US$122 million of green loans signed this year, close to half of the US$247 million figure globally and already outpacing growth in the Americas.

The loan is for Brookfield Place Perth Tower 1 and Tower 2. The buildings are home to top-tier tenants including mining giant BHP Group, telecom heavyweight Telstra and conglomerate Wesfarmers.

Brookfield Properties owns the towers, which meet the Climate Bond Initiative certification criteria relating to commercial low-carbon buildings - for features such as energy-efficient heating, ventilation and air conditioning, high-performance glazing and lighting, and water systems designed to improve usage.

They also have a "5-Star Green Star" accreditation by the Green Building Council of Australia.

Elsewhere in Asia, China's Xinjiang Goldwind is marketing its debut green loan of US$475 million. BOCOM Leasing Management Hong Kong Co, a subsidiary of Bank of Communications Financial Leasing Co, closed a US$200 million green facility earlier this week. In April, Singapore's City Developments Ltd secured bilateral green loans worth S$500 million. BLOOMBERG