World first green bond for QIC shopping centre
Trailblazing a sustainability path for the retail sector
QIC Global Real Estate was the world’s first retail property landlord to issue a green bond certified by the global Climate Bonds Initiative. The bond, which financed sustainability initiatives at three major Australian shopping centres, demonstrates a new way for commercial property owners to lift the environmental performance of their assets.
$300m
green bond
3
shopping centres
35%
drop in emissions
We are proud to have achieved this world first for the retail property sector and deliver on the objectives of our investors to make meaningful and tangible progress towards enhancing our sustainability performance.Michael FattouhFund Manager, QIC Town Centre Fund
Our investment
The CEFC secured $30 million as a cornerstone investor in the $300 million QIC green bond, as part of our broader commitment to support Australia’s emerging green bond market in helping finance lower emissions.
The QIC green bond, issued in 2019, was certified by the Climate Bonds Initiative under its criteria for Low Carbon Buildings – Property Upgrade. It was issued under a QIC-developed framework that supports and contributes towards meeting the United Nations Sustainable Development Goals.
our impact
The CEFC is an active investor in the evolving climate bond market, providing cornerstone commitments to build investor demand while also encouraging issuers to develop climate bond frameworks. Climate bonds offer low risk investment propositions, which are consistent with the principles of responsible investing. Growing interest from investors who want to deepen their exposure to sustainable assets is essential for Australia to meet its national emissions reduction goals.
The QIC green bond was five times oversubscribed, attracting substantial interest from new investors from Australia and Asia, including those with mandates to invest in green or other ESG opportunities.
The QIC green bond has financed initiatives to enhance the environmental performance of three major assets in the QIC Town Centre Fund portfolio, including:
- Grand Central, Toowoomba
- Robina Town Centre, Gold Coast
- Eastland, Melbourne.
As a result of the upgrade program, the three shopping centres are expected to reduce their carbon emissions by more than 35 per cent in three years.
Upgrade initiatives include new building management systems, LED lighting, energy efficient air-conditioning systems and rooftop solar program.
The works financed through the bond program are part of the QIC Global Real Estate commitment to achieving net zero carbon emissions by 2028 for the core assets of the QIC Town Centre Fund Portfolio.
QIC GRE owns and actively manages a $21.4 billion portfolio of retail and commercial properties across Australia and the United States. It described the green bond as an important milestone for the retail sector globally.
Learn more about how the CEFC is working with QIC on the portfolio.
