ISPT issues $1.5bn sustainably linked loan facility

Industry Super Property Trust (ISPT) has issued a $1.5 billion sustainably linked syndicated term loan that is reportedly one of the largest for any Australia real estate fund manager.

The facility is evenly split across five and seven-year tenors and has attracted participation from 20 lenders.

Commonwealth Bank of Australia (CBA), ANZ, Westpac, and HSBC acted as joint mandated lead arrangers and bookrunners and joint sustainability coordinators.

With the transaction, ISPT has taken its sustainability-linked loans to a total of $5.75 billion.

Additionally, ISPT has secured an additional $400 million in bilateral sustainability linked loan facilities and re-financed $1 billion, bringing its Core Fund's total debt package to $6.3 billion.

"Connecting our debt facilities through sustainability linked loan's that are aligned with our ESG Strategy is another way that we hold ourselves accountable for delivering on our sustainability commitments," ISPT chief sustainability officer Steven Peters said.

"We believe that this transaction reinforces ISPT's approach to embedding responsible investment into every facet of our operations."

ISPT's sustainability linked loans will be tied to the company's sustainability performance targets, which include metrics such as emissions intensity, waste reduction, water consumption, and labour certification. These targets are in line with ISPT's ESG framework, which focuses on key areas such as climate change, resource efficiency, and supply chain.

This is ISPT's third sustainability linked loan having restructured the ISPT Retail Australia Property Trust's (IRAPT) bank facilities as sustainability linked loans in September 2021 and the completion of $2.8 billion sustainability linked loan for the ISPT Core Fund in April 2021.

ISPT's $22.2 billion portfolio invests in and develops commercial, retail, logistics, warehousing and residential property in Australia.