CBA Issues Inaugural Australian Sustainability Loan for Celsus
(15 July 2021 – Australia) CBA has served as Joint Sustainability Coordinator on a A$2.2 billion sustainability loan for Celsus, breaking new ground in the global sustainable finance market.
As the commercial (non-clinical) operator of The Royal Adelaide Hospital, Celsus’ sustainability loan with CBA support is the first sustainability loan in Australia, first sustainability loan for the global healthcare sector, largest healthcare environmental, social and governance (ESG) labelled loan in Asia Pacific and largest project finance ESG-labelled loan in Australia.
The Royal Adelaide Hospital is one of the most advanced hospitals in Australia and the first large-scale hospital complex in the country to achieve a Four Star Green Star – Healthcare ‘As Built’ rating from the Green Building Council of Australia.
A sustainability loan is a type of finance overlay that recognises a project or asset that achieves a combination of positive environmental and social outcomes. Celsus’ refinancing achieved sustainability loan status because the Royal Adelaide Hospital met the eligibility requirements of the Asia Pacific Loan Market Association’s Green Loan Principles and Social Loan Principles.
“Our lived experience throughout the pandemic has undoubtedly brought home for all Australians the importance of access to world-class healthcare, and the critical role it serves in Australia’s recovery. We are incredibly proud to support Celsus in cementing their commitment to driving beneficial environmental and social outcomes for their business and for the many South Australians the Royal Adelaide Hospital serves and cares for each year” commented CBA Group Executive Institutional Banking & Markets, Andrew Hinchliff.
“The combination of both green and social elements in a single sustainability loan shows that the same project can advance Australia toward a more sustainable economy and a more inclusive society and is a testament to the ambition and commitment of Celsus. This transaction’s unique combination of factors marks an important milestone in the development of both Australia’s and the world’s market for sustainable finance” Mr Hinchliff added.
“The Royal Adelaide Hospital was designed and constructed to minimise the impact on the environment. This site boasts a total of 3.8 hectares of landscaped environment. It includes more than 70 internal themed courtyards and sky gardens across the hospital’s nine levels with special features such as a Spinal Garden and Aboriginal Garden, creating a 1.6-hectare footprint of green space within the hospital” stated Celsus CEO, Di Mantell.
“High efficiency water fittings have been incorporated and water is captured and recycled throughout the facility, while an onsite cogeneration system provides heating and domestic hot water to the building. The sustainable loan was part of Celsus’ and its investors’ commitment to South Australia, as well as environmental and sustainable practices. This innovative financing structure enables Celsus to deliver both financial and environmental benefits to its shareholders and the community. We want to be a leader in the new world of sustainable finance” Ms Mantell added.