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    Australia’s first ‘green bonds’ to fund sustainable building projects

    Nathan Johnson

    Stockland, one of Australia’s largest property groups, is now the nation’s first company to sell green bonds in a bid to fund the development of more environmentally sound projects.

    The company launched the €300 million ($350AUS million) green bond to the market on Thursday, October 23, and have said that proceeds from its sale will be invested in green building projects that achieve a minimum 4 Star Green Star rating from the GBCA.

    The Green Building Council Australia (GBCA) said it was pleased with Stockland’s decision to tie its green bond to their Green Star outcomes and believe it will lead to best practice sustainable building outcomes.

    Stockland announced that the green bonds will fund investment in the development and redevelopment of Green Star-rated retail, commercial, residential and retirement living projects.

    The Value of Green Star research has found that buildings with 4 Star Green Star ratings, on average:

    • produce 40% fewer greenhouse gas emissions when compared to standard practice for new construction
    • produce 60% fewer emissions when compared to the average performance of existing stock
    • consume 40% less energy than average new buildings
    • consume 43% less potable water than average new buildings
    • recycle 85% of construction and demolition waste.

    “Assets with 4 Star Green Star ratings, representing ‘best practice’ in sustainable building design and construction, have been proven to deliver higher returns on investment than non-green buildings, attract higher rents, better employees, more grants and partnerships, and are symbols of corporate commitment to leadership in sustainability,” explains the GBCA’s Chief Operating Officer, Robin Mellon.

    “Green bonds will encourage investors to consider potential assets on the basis of their long-term sustainable returns. Stockland’s leadership will help us build a more sustainable property industry.”

    Stockland's Managing Director and CEO, Mark Steinert, has said that the green bond will enable the company to further invest in leading-edge sustainable projects.

    The bond issue is listed on the Singapore Stock Exchange. More info here on how good an investment the bonds will be: http://www.afr.com/p/business/property/stockland_launches_country_first_ZfnDaBfqJNkO5w099cyraM

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