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    INVESTMENT BANKING | CLIENT STORY

    Powering sustainable real estate with Frasers Property

    15 Dec 2023

    Green and sustainable finance is gaining ground in the Asia-Pacific region*, thanks in part to purpose-driven companies such as Frasers Property Limited. Together, Barclays and Frasers Property are advancing sustainable financing in the property sector and beyond.

    Together, Barclays and Frasers Property are advancing sustainable financing in the property sector and beyond
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    Frasers Property, a multinational investor-developer-manager of real estate products and services headquartered in Singapore, has partnered with Barclays Corporate and Investment Bank since 2015 to issue a series of loans, many of them green or sustainability-linked.†

    This issuance has helped both organisations progress on their sustainability goals, while advancing green and sustainable financing across the Asia-Pacific region and, more specifically, within the property sector.

    Frasers Property, which has businesses in Asia-Pacific, the EU and the UK, operates across five asset classes: residential, retail, commercial and business parks, industrial and logistics, as well as hospitality. Sustainability is a key pillar of the company’s corporate strategy and extends to all areas of the business.

    Building a relationship of trust

    Frasers Property first worked with Barclays in 2015 for support in diversifying their lender base and increasing liquidity. Andrew Ashman, Managing Director, Head of Loan Syndicate, Asia-Pacific at Barclays walked Frasers Property through the process. “We jointly arranged and structured a deal, and then launched the syndication to the broader market and invited banks across the Asia-Pacific region to join the loan transaction,” says Ashman.

    Barclays and other arrangers ultimately helped the company secure an A$600m syndicated term loan and revolving credit facility, helping the company form relationships with new lenders across the Asia-Pacific region.

    The transaction also had the effect of building trust between the teams, leading to a series of successful deals including Frasers Property’s first acquisition financing syndicated loan for strategic assets in Europe.

    Most recently in September 2022, Barclays jointly with other arrangers supported the company to secure a US$400m syndicated green term loan using a green finance framework issued by its treasury arm. The framework further supports Frasers Property’s goal of using green and sustainable financing for most of its sustainable asset portfolios by 2024.

    Over time, the relationship expanded, with the Frasers Property team leveraging the breadth of solutions across Barclays Corporate and Investment Bank in areas such as cash management and hedging solutions. This collaborative, day-to-day relationship facilitates greater financial efficiency for Frasers Property across both its Singapore and UK businesses. What’s more, the breadth of the relationship has supported Frasers Property during almost a decade of strong growth and expansion.

    Tangible results

    Frasers Property is taking significant steps towards becoming a more sustainable business. The group has committed to a net zero carbon goal by 2050. As of 30 September 2023, more than half of their owned and asset-managed properties and a large majority of new development projects by gross floor area were either green-certified or are pursuing certification.‡ Across their markets, they have provided over 6,800 staff volunteer hours in FY23 alone.§

    And, with Barclays being an underwriter and Green or Sustainability Coordinator on the majority of their syndicated loans to date, 100% of Frasers Property’s Australian platform corporate facilities are already green or sustainability linked.

    Funds generated through green financing will be utilised to support real estate projects that contribute to efficient energy usage, lowered carbon emissions, reduced water consumption, and minimised waste production.

    Barclays celebrates its 50th anniversary in Singapore in 2023, and relationships such as those with Frasers Property pave the way for more green and sustainable financing in the Asia-Pacific region.

    Sources

    * Source: Climate Bonds Initiative. "Value of Green Bonds Issued Worldwide from 2014 to 2022, by Region (in Billion U.S. Dollars)." Statista, Statista Inc., 1 Apr 2023, https://www.statista.com/statistics/1294449/value-of-green-bonds-issued-worldwide-by-region/

    † Source: Frasers Property Group Integrated ESG Report 2022, https://www.frasersproperty.com/content/dam/frasersproperty/feature/project/frasers-corporate/sustainability/FPL-Integrated-ESG-Report-2022.pdf

    ‡ Source: Frasers Property Group Integrated ESG Report 2022, https://www.frasersproperty.com/content/dam/frasersproperty/feature/project/frasers-corporate/sustainability/FPL-Integrated-ESG-Report-2022.pdf

    § Source: Frasers Property Group Integrated ESG Report 2023, https://www.frasersproperty.com/content/dam/frasersproperty/feature/project/frasers-corporate/sustainability/2023/ESG-report-2023.pdf

    Disclaimer

    Any transactions referred to in this document labelled as “green”, “social”, “sustainable” or equivalent were labelled as such at the point of issuance/origination (or equivalent) of the relevant transaction. Please note such labelling is distinct from the reporting eligibility criteria of Barclays’ own sustainable finance /transition finance frameworks. Such transactions are referenced here merely as examples of the types of transactions in which we have been able to assist our clients. By including them in this document we are not making any current claims about their sustainability related characteristics.

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    Disclaimer

    Any transactions referred to in this document labelled as “green”, “social”, “sustainable” or equivalent were labelled as such at the point of issuance/origination (or equivalent) of the relevant transaction. Please note such labelling is distinct from the reporting eligibility criteria of Barclays’ own sustainable finance /transition finance frameworks. Such transactions are referenced here merely as examples of the types of transactions in which we have been able to assist our clients. By including them in this document we are not making any current claims about their sustainability related characteristics.

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