Westpac supports GPT Wholesale Office Fund with its inaugural green bond
28 October 2021
Westpac is proud to announce that it was Joint Green Bond Coordinator and Joint Lead Manager for GPT Wholesale Office Fund (GWOF) pricing an inaugural $250 million, 10-year Green Bond. GWOF has a Gross Asset Value of $9.4 billion, with an ownership interest in 17 office assets and two development assets across Australia’s CBDs.
The Green Bond is certified by the globally recognised Climate Bonds Initiative (CBI). Proceeds from GWOF’s Green Bond will be used to finance or refinance existing GWOF assets that meet CBI’s Buildings Criteria, which require the assets to perform in the top 15% in their relative city in terms of carbon intensity.
Prior to launching GWOF’s inaugural Green Bond, GPT established its Sustainable Debt Framework (Framework), which outlines how GPT and GPT’s Wholesale Funds (including GWOF) intend to issue and manage sustainable debt. The Framework was assured by Ernst & Young.
Anthony Miller, Chief Executive of Westpac Institutional Bank said: “Westpac is proud to assist GPT in developing a Sustainable Debt Framework that recognises GPT’s long standing leadership in sustainability and its debut Green Bond transaction for GWOF”.
“The quality of GWOF’s assets and the Green Bond structure was well received by investors across Australia and Asia resulting in the price tightening by 8bps from initial guidance”.
Martin Ritchie, Fund Manager of GPT Wholesale Office Fund said: “It was great to partner with Westpac. The Joint Lead Managers made the process very simple and we were able to further build on our sustainability ambitions through our landmark transaction. We are very pleased with the strong level of investor support received in GWOF’s inaugural Green Bond issuance”
Globally, Sustainable Finance issuance is at an all-time high, as September 2021 year to date (YTD) issuance surpassed US$1.1tn (September 2020 YTD US$449bn).
GWOF's Green Bond issuance pushes total AUD property green bond issuance to over A$1.5bn (All data sourced from Bloomberg).
Mr Miller said: “We’re seeing real momentum in ESG capital markets as our customers look for ways to be more sustainable and demonstrate this to the market. We’re proud to partner with our customers to help guide them and build on their sustainability commitments, like we have with GWOF’s inaugural Green Bond”.