Quickfire follow up in Australia’s corporate green-bond market as ICPF debuts

On 12 April, the financing entity for Investa Commercial Property Fund (ICPF) (A-/S&P), ICPF Finance, priced a new 10-year green bond at the tight end of initial price talk of 155-160 basis points over semi-quarterly swap. ICPF Finance’s launch comes in the wake of a series of investor meetings and conference calls which took place during the week of 3 April.

Launch also follows the pricing of Australia’s first true-corporate domestic green bond. On 30 March, Investa Office Fund (IOF) printed A$150 million (US112.6 million) of seven-year notes at 168 basis points over semi-quarterly swap. IOF and ICPF’s parent, Investa, has a corporate commitment to sustainable development and this eased the path to market, IOF told KangaNews in the wake of its deal. Net proceeds of the ICPF Finance green bond will be fully allocated and earmarked against more than A$1 billion of low-carbon buildings.

Issuer name: ICPF Finance
Issuer rating: A- (S&P)
Issue rating: as issuer
Pricing date: 12 April 2017
Settlement date: 21 April 2017
Maturity date: 21 April 2027
Lead managers: ANZ, Commonwealth Bank of Australia

Volume: A$100 million
Total outstanding in this line: A$100 million
Coupon type: fixed
Coupon rate: 4.25
Issue/re-offer price: par
Issue yield: 4.25%
Margin to swap: 155bp/s-q