IREIT Global has established a green financing framework to further advance and integrate its sustainability commitments and priorities into its core business and strategies, according to a Dec 5 release.
According to the REIT, the framework is guided by the four key components of International Capital Markets Association Green Bond Principles (2021) and the Green Loan Principles (2023) administered by the Loan Market Association, the Asia Pacific Loan Market Association and the Loan Syndications and Trading Association. This includes the use of proceeds; process for project evaluation and selection; management of proceeds; and reporting, alongside the key recommendations of external review.
DBS Bank and OCBC Bank have been appointed as the joint advisors of the framework.
The REIT adds that the framework will serve as a guideline on how it intends to enter into green finance transactions (GFTs), which is expected to deliver environmental and social benefits that support IREIT’s objectives.
The GFTs that may be issued under the framework include bonds, term loans, revolving credit facilities, medium-term notes, convertible bonds, perpetual securities and any other financial instrument in various formats, currencies, tenors, as well as terms and conditions.
The framework has also been independently reviewed by a second-party opinion professional, S&P Global Ratings, which has assessed that it is aligned with the Green Bond Principles and Green Loan Principles. The framework has since been assigned a light green shade
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Peter Viens, CEO of the manager, says, “As a responsible real estate owner and investor, IREIT will seek to fund projects and investments under the Framework, such as issuing green bonds off its US$1 billion multicurrency debt issuance programme that was established in 2022. This will facilitate its efforts in making positive impacts towards the globally shared goal of keeping global warming under 2 degrees celsius.”
He adds: “As part of our long-term goals towards building a stable and resilient portfolio, we are now targeting to pursue green certifications for our B&M retail portfolio in France. Together with a potential Leadership in Energy and Environmental Design (LEED) Gold certification upon completion of the repositioning of Berlin Campus, 100% of IREIT’s portfolio assets would be green certified.”
Shares in IREIT Global closed flat at 28.5 cents on Dec 5.
