Eco Investor November 2014

Fixed Interest

Stockland Issues Corporate Green Bond

Listed property giant Stockland has issued what it says is Australia's first corporate green bond. The proceeds of the EUR 300 million bond will be used to help fund eligible environmentally sustainable projects such as the development and redevelopment of green star rated retail, commercial, residential and retirement living projects.

Redevelopments will see buildings brought up to a minimum four star green rating, said Greg Spears, senior manager - Media Relations with Stockland.

The seven year green bond was issued under Stockland's Euro Medium Term Note program. The coupon is the Bank Bill Swap Rate (BBSW) plus 153 basis points. It is paid annually in Euros.

The notes will be listed on the Singapore Stock Exchange.

Managing director and chief executive officer, Mark Steinert, said the green bond will enable Stockland to further invest in leading edge sustainable projects. "We currently have the highest number of Green Star rated shopping centres in Australia and have completed the first Green Star rated retirement living village, Affinity in Perth. Our largest ever residential community project, Caloundra South on the Sunshine Coast in Queensland, is the first Green Star residential communities pilot project in the country. This green bond will help support our continued investment in projects like these to the benefit of our customers, communities and investors."

Also an example is the $222 million redevelopment of Stockland Wetherill Park Shopping Centre in Sydney, which is now underway and due for completion in 2015-16. Stockland is aiming for a 5 Star Green Star Certified Design and As Built Rating through the inclusion of environmentally sustainable design features such as high efficiency air conditioning systems, low usage water equipment and the use of renewable energy.

Caloundra South on the Sunshine Coast is Stockland's largest community development with a value of $5 billion. It is expected to commence in 2014-15 with first settlements in 2015- 16. The project will feature best practice water management, increased biodiversity, conservation and ecological values. It will minimize demand for potable water through water management including water capture and reuse. A sealed sewer system will protect the quality of the groundwater and waterways, and there will be widespread water sensitive urban design.

On the landscape side, Caloundra South will connect homes with schools, playgrounds, shops and cafes through an intricate series of pathways and cycle paths to encourage residents to walk and ride, and to start to sensibly reduce dependence on cars for short trips.

Stockland said the bond confirms its commitment to the long-term environmentally sustainable and accretive development of its portfolio. Stockland was named one of the Global 100 Most Sustainable Corporations in the World at the World Economic Forum in Davos, Switzerland in 2014 for the fifth consecutive year. It aims for the bond to help it continue this leadership in sustainability.

Stockland says that internationally, the green bond market has grown significantly in recent years and it believes the use of green bonds in Australia is also likely to increase.








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