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Overview

Bank of China contributes to a $880 million AUD syndicated green loan to Brookfield Properties to refinance Brookfield Place Perth Towers 1 and 2

Commitment Year•2019Country of Activity•AustraliaDirect Recipient Country of Incorporation•United StatesSector•Business And Other ServicesFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jun 13, 2019
Last repayment (originally scheduled)
Jun 11, 2024

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • Australia and New Zealand Banking Group (ANZ)
  • Citigroup Inc.

Receiving agencies

Private Sector

  • Brookfield Properties, Inc.

Collateral providers

Private Sector

  • Brookfield Properties, Inc.

Loan description

Bank of China contributions to a $880 million AUD syndicated green loan to Brookfield Properties to refinance Brookfield Place Perth Towers 1 and 2

Interest rate (t₀)•3.0842%Interest type•Variable Interest RateMaturity•5 years

Collateral

This loan was secured by Brookfield Place Perth Tower 1 and Brookfield Place Tower 2.

Narrative

Full Description

Project narrative

On June 13, 2019, a syndicate of banks — including the Bank of China (BOC) — entered into a $880 million AUD ($608 million USD) syndicated green loan agreement with Brookfield Properties to refinance existing bank debt for Brookfield Place Perth Tower 1 and 2. This loan carried a tenor (maturity) of five years and an interest of BBSY plus a margin of around 170 basis points. It was secured by (i.e. collateralized against) Brookfield Place Perth Tower 1 and Brookfield Place Tower 2. In addition to BOC, Citigroup and Australia and New Zealand Banking Group (ANZ) participated in this syndicated loan. BOC, ANZ, and Citigroup served as mandated lead arrangers, bookrunners, and underwriters. ANZ served as the sole green coordinator. This was the largest syndicated green loan in Australia to this point. Brookfield Place is an office and mixed-used development in Perth, Western Australia. Tower 1 had 45 floors and, at the time of the loan, was the second tallest building in Western Australia. Tower 2 had 16 floors. The towers, noted for their energy-efficiency, met the Climate Bond Initiative's certification criteria for commercial low carbon buildings and had a 5-Star Green Star accreditation from the Green Building Council of Australia.

Staff comments

1. The number of participants in this syndicated loan besides ANZ, BOC, and Citigroup is unknown. As there may be a substantial number of additional lenders, AidData has not applied the equal contributions assumption. 2. Page 4 of "Brookfield Property Group Sustainable Finance Framework May 2021" states that this loan was "executed" in April 2019. However, most other sources state that the loan was signed in June 2019; it is likely that "executed" was a preliminary agreement, with the loan being finalized in June 2019. 3. AidData is calculating the loan's interest rate (3.0842%) as the sum of the reported margin rate (170bps/1.70%) and the contemporary 6-month BBSW rate (1.3842%). BBSW rate information was taken from this source: https://www.dropbox.com/scl/fi/vf4hmk3ca1b11nm8tyjkg/BBSW-and-BBSY-Daily-Reference-Rates-2000-to-2023.xlsx.xlsx?cloud_editor=gsheet&dl=0&rlkey=ozq8sa1itiq8kmpnqhdb6jndh#gid=544580120