World’s biggest investors bank on green debt as demand grows
Courtesy of Hines
Some of the world’s largest investors are tapping into the growing demand for “green” home loans, an area where demand is growing both from home buyers and from the creditors who finance the purchases.
In the past two weeks alone, four new debt packages focused on environmental sustainability have been guaranteed by borrowers totaling $ 1.85bn (£ 1.35bn), and debt providers have demanded almost the triple that amount.
Asia’s largest REIT, Link, said in January it had converted a loan secured by its first London office purchase into a new £ 200million sustainability loan. The five-year loan is granted by BNP Paribas and DBS and is backed by Cabot, a Link office building bought in 2020.
Last month, a fund managed by CBRE Global Investors issued 500 million euros green bond which it will use to invest in green projects across Europe. CBRE GI said there was demand for the bonds totaling 1.7 billion euros and this was the first time a real estate fund has issued a green bond, meaning other funds are expected to be in. able to follow.
And this week, Atrium European Real Estate, the Central and Eastern European shopping center investor owned by Israeli giant Gazit, also issued a green bond, for a total amount of € 300m. He said he had received a request for 1.2 billion euros in bonds. It will use the funds to improve the sustainability of its existing programs in line with the green funding framework it has put in place.
On the lender side, in January, the specialist German real estate bank PBB placed a green bond of 500 million euros, with investor demand amounting to 1.3 billion euros. PBB takes the money raised from the green bond and uses it to provide loans to sustainable properties.
In 2020, international investors including Brookfield, Lendlease and Tritax all issued green bonds for the first time.