IREIT Global unveils green financing framework to strengthen sustainability goals

SINGAPORE: IREIT Global has launched a comprehensive green financing framework, reinforcing its commitment to sustainability and environmental responsibility.

Announced on December 5, the new initiative aligns with the company’s core strategies, integrating sustainability into its business practices as per the report of The Edge Singapore.

The framework, developed in line with the 2021 International Capital Markets Association (ICMA) Green Bond Principles and the 2023 Green Loan Principles, follows a clear structure focusing on four key components — the use of proceeds, project evaluation and selection process, management of proceeds, and transparent reporting.

Additionally, the framework incorporates external review recommendations for further credibility.

To guide this ambitious undertaking, IREIT Global has enlisted DBS Bank and OCBC Bank as joint advisors. The framework will outline the REIT’s approach to green finance transactions (GFTs), which are expected to deliver positive environmental and social outcomes that align with IREIT’s sustainability objectives.

Under the framework, the REIT may issue various green finance instruments, including bonds, term loans, revolving credit facilities, and convertible bonds, across different currencies, tenors, and conditions.

The framework has been independently assessed by S&P Global Ratings, which confirmed its alignment with the Green Bond Principles and Green Loan Principles, assigning it a “light green” shade.

Peter Viens, CEO of IREIT’s manager, emphasized the significance of the initiative: “As a responsible real estate owner and investor, IREIT will seek to fund projects and investments under the Framework, including the issuance of green bonds under our US$1 billion multicurrency debt issuance programme. This will support our efforts to contribute to the global goal of limiting global warming to below 2°C.”

Looking ahead, Viens outlined IREIT’s long-term sustainability goals, including the pursuit of green certifications for its B&M retail portfolio in France and a potential Leadership in Energy and Environmental Design (LEED) Gold certification for the Berlin Campus.

These initiatives aim to ensure that 100% of IREIT’s portfolio assets are green-certified.

IREIT Global’s shares closed unchanged at 28.5 cents on December 5.