The Commonwealth Bank has supported Cbus Property to enter the sustainable finance market by serving as joint sustainability coordinator and sole financier on the property investor’s green development loan.
Cbus Property’s green development loan supports the construction of a next-generation 21-storey commercial office tower in Adelaide’s CBD, which targets a 5.5 star NABERS Energy rating and a 6 Star Green Star design rating, and is designed to be net-zero carbon in operation.
EY said that the transaction aligns with the Asia Pacific Loan Market Association’s Green Loan Principles.
“We are incredibly proud to support Cbus Property with one of its first sustainable finance issuances, and one that recognises a new development that is targeting some of the highest sustainability standards in the commercial property sector,” said Charles Davis, CBA’s managing director of sustainable finance and ESG. “Commercial property constructed today will serve Australians for decades to come, so it is critical to embed the highest sustainability, energy efficiency and green elements in the design to ensure this infrastructure supports the transition to a net-zero economy of the future.”
Adrian Pozzo, Cbus Property’s CEO, said the successful execution of the green development loan in accordance with the business’ new sustainable finance framework reinforced its industry-leading sustainability program, including managing the highest-rated NABERS Energy office portfolios in Australia in 2020 and 2021, and ranking in the top 1% in the Global Real Estate Sustainability Benchmark (GRESB) in 2021.
“Cbus Property will drive the utilisation of this framework in our upcoming developments and explore opportunities to underpin our existing portfolio, while delivering on our commitment to achieve our sustainability targets and develop responsible investments for our members,” Pozzo said.
The International Energy Agency said property and building construction accounts for more than a third of global energy consumption and offers one of the largest opportunities for low-cost carbon abatement.
