Property and construction giant Lendlease has become the largest issuer of green bonds of any non-financial company listed on the Australian Stock Exchange after completing its second green bond issue in over five months.
In its latest announcement, Lendlease says it has completed its issue of its second green bond – a ten-year bond valued at $300 million which pays a coupon of 3.7 percent.
The move follows the group’s first issue of a $500 million green bond last October and takes its total money raised through green bonds to $800 million.
Enacted as part of moves to enable financiers around the world to invest in environmentally sustainable projects and assets, green bonds are bonds through which proceeds are exclusively applied to projects or initiatives that deliver environmental benefits.
These can include renewable energy, energy efficiency upgrades, prevention and control of pollution, sustainable land and resource management, biodiversity protection, clean transport, sustainable water management, climate change adaption, recyclable products or green buildings.
In Lendlease’s case, the proceeds have been earmarked to support delivery of green buildings and communities across its $110 billion project pipeline.
Projects which qualify include 22 major urban renewal developments such as Barangaroo in Sydney, International Quarter London and Southbank in Chicago.
The latest bond issue follows earlier commitments by Lendlease to achieve NetZero scope 1 and scope 2 emissions by 2025, reach absolute zero carbon emissions by 2040 and generate $250 million in measured social value by 2025.