Allens has advised the lenders on the restructuring of ISPT Core Fund's $2.8 billion bank facilities to align with sustainability-linked loan (SLL) principles.
The facility is the largest SLL announced in Australia to date, and sees the Fund become the first Australian REIT to apply a SLL framework to all its bank facilities.
Under the SLL, sustainability performance targets will apply to the Fund's use of borrowed capital in alignment with ISPT's ESG strategy.
The existing lenders - ANZ, CBA, HSBC, NAB and Westpac - each acted as joint sustainability coordinator, while Bank of Nova Scotia joined the club as a lender.
'Sustainability-linked loans are increasingly in demand for Australian funds and borrowers more generally, who are seeking to align their debt arrangements with ESG goals and strategy,' said lead Partner Warwick Newell.
'We congratulate the lenders and ISPT on this significant step forward for Australia's SLL market.'
Allens is recognised as a leading adviser on innovative SLL financing, having also recently advised Sydney Airport on its sustainability-linked loan.
Allens legal team
Banking and Finance
Warwick Newell (lead Partner), Renee Boundy (Partner), Brooke Muggeridge (Senior Associate), Madeleine Tehan (Lawyer)