Investa Commercial Property Fund (ICPF) has closed a A$170 million (US$122.3 million) green loan having tagged its entire asset portfolio against the Climate Bonds Initiative (CBI) low-carbon-building criteria emission thresholds. The facility is bilateral with ANZ, but the borrower says green loans should be able to find new liquidity and pave the way for more downline green-bond issuance.
Increased product recognition helped International Finance Corporation (IFC) more than double the outstanding volume of its Kangaroo social bond via the first tap of this line, which priced on 10 January. Deal sources say social bonds are starting to be viewed under the same socially responsible investment (SRI) criteria as green bonds, thus bringing in a broader range of investors.
Kangaroo deal flow in benchmark volume started coming through on 8 January, when Asian Development Bank (ADB) priced a A$1 billion (US$718 million), five-year green bond. Despite ongoing headwinds for supranational, sovereign and agency (SSA) issuance in Australian dollars, the deal achieved record volume based, deal sources say, on the boost the year’s first issuer typically receives, improving technical factors and the green overlay.