Frasers Property issues S$200m sustainability notes at 3%

FRASERS Property AHL, a subsidiary of Frasers Property's Australia unit, has issued S$200 million worth of sustainability notes due October 2028.

Priced on Sept 16 at a coupon rate of 3 per cent per annum, the Series 001 notes were issued Thursday under Frasers Property AHL's A$2 billion (S$1.96 billion) multicurrency debt issuance programme established in February 2020.

They are expected to list on the Singapore Exchange with effect from 9am on Sept 24.

OCBC was the sole lead manager for the deal, and also acted as the sustainable finance adviser in preparing the framework.

Frasers Property TQ5 : TQ5 0% said it intends to use the net proceeds from its latest note issuance to finance its Australian business' sustainable portfolio, specifically in new or existing qualifying assets and projects under Frasers Property Australia's sustainable finance framework established in 2020.

The note issuance is a first for Frasers Property's Australia business. It also marks Frasers Property's second issuance of sustainability notes in the SGD bond market, after its subsidiary Frasers Logistics & Commercial Trust raised S$150 million in sustainability notes in July 2021.

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The group has secured green and sustainable financing totalling over S$6 billion to date since its first green loan in September 2018.

Financing the majority of its new sustainable asset portfolios with green financing by 2024 is among Frasers Property's five sustainability goals, which the group believes will guide it towards its goal of being a net-zero carbon corporation by 2050.

Commenting on the latest note issuance, Loo Choo Leong, group chief financial officer of Frasers Property, said: "We are encouraged by investors' recognition of the strong sustainability credentials in our Australian portfolio and the Group's financial strength. Creating places for good with long-term value for all stakeholders requires sustainable financing that promotes better environmental and social outcomes."

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• Frasers Property proposes 37-for-100 rights issue at S$1.18 per share